Pre-requisite: QSTAC 221; sophomore standing. Financial managers in a firm play a key role in determining which projects to pursue, aligning financial goals with overall business strategy, determining capital structure, budgeting and forecasting, and financial management. A basic understanding of these tasks is important to any career in the business world. FE223 introduces students to the workings of the financial markets and financial concepts that are used in business and investment decisions as well as in personal financial decisions. We begin with time value of money, interest rates and valuation of cash flow streams and apply these tools both to corporate finance (finance from the perspective of the firm) and to investments (finance from the perspective of the investor). The goal of the course is that, on successful completion, students will master time value of money (TVM) calculations and applications, understand the relationship between risk and return and be able to calculate the return on individual securities and portfolios, be able to apply discounted cash flow analysis methodology to valuing potential investments, be able to build a cash flow forecast and assess the need for additional capital, understand basic valuation techniques for bonds and understand the relationship between bond prices and market interest rate fluctuations, use the Capital Asset Pricing Model (CAPM) to calculate the equity cost of capital, calculate the Weighted Average Cost of Capital (WACC) of the firm, and be able to assess the impact of capital structure on the value of a firm.

Note that this information may change at any time. Please visit the MyBU Student Portal for the most up-to-date course information.