Bus 4404 Principles Of Finance 2

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Course Outline

BUS 4404: Principles of Finance 2

Prerequisites:

BUS 2203: Principles of Finance 1

Course Description:

This course expands on concepts from Principles of Finance 1 to provide greater depth of core issues including valuation, cost of capital, capital budgeting, estimating cash flows, capital structure, dividends, forecasting, and working capital management. Case studies and information resources will be utilized to explain how financial theory is applied in real-life situations.

Required Textbook and Materials:

The main required textbooks for this course are listed below, and can be readily accessed using the provided links. There may be additional required/recommended readings, supplemental materials, or other resources and websites necessary for lessons; these will be provided for you in the course’s General Information and Forums area, and throughout the term via the weekly course Unit areas and the Learning Guides.

  • Hill, R.A. (2012). Company Valuation and Takeover: Part II. BookBoon: Robert Alan Hill & Ventus Publishing ApS.
  • Compendium. Corporate Finance. (2008). BookBoon: Ventus Publishing ApS.
  • Nielsen, K.M. (2010). Corporate Finance: Part II – Budgeting, Financing & Valuation. BookBoon: Ventus Publishing ApS.
  • Passenheim, O. (2010). Enterprise Risk Management. BookBoon: Ventus Publishing ApS.
  • Compendium. Boundless Finance Textbook. Boundless.Com.
  • Volker, M.C. (2012). Making the Business Case. BookBoon: Ventus Publishing ApS.
  • Walther, L.M. (2012). Principles of Accounting. Logan, UT: Utah State University.
  • Hill, R.A. (2010). Strategic Financial Management: Part II – Finance & Wealth Decisions. BookBoon: Ventus Publishing ApS.
  • Walther, L.M. & Skousen, C.J. (2009). Using Account Information. BookBoon: Ventus Publishing ApS.

Software Requirements/Installation:

No special requirements. This course does not require a financial calculator. Most of the computations in the course can be performed with an ordinary calculator. For any complex calculations, a link to an online calculator will be provided accordingly.

Learning Objectives and Outcomes:

By the end of this course students will be able to:

  1. Perform basic forecasting and planning.
  2. Perform financial ratio analysis.
  3. Examine short-term financing.
  4. Evaluate long-term capital projects.
  5. Solve the cost of capital.

Course Schedule and Topics:

This course will cover the following topics in eight learning sessions, with one Unit per week. The Final Exam will take place during Week/Unit 9 .

Week 1: Unit 1 – Principles: Introduction to Business Valuation Basics

Week 2: Unit 2 – Principles: Estimating Cash Flows

Week 3: Unit 3 – Principles: Capital Budgeting

Week 4: Unit 4 – Principles: Capital Structure and Cost of Capital

Week 5: Unit 5 – Application: Managing Working Capital

Week 6: Unit 6 – Application: Managing Cost of Capital

Week 7: Unit 7 – Application: Case Studies

Week 8: Unit 8 – Application: Risk Management

Week 9: Unit 9 – Course Review and Final Exam