PRINCIPLES OF FINANCE

Course Objectives:
The primary objective of this course is to introduce students to financial planning and analysis concepts with emphasis on start-ups and small businesses in the high tech sector of the economy. Another major objective of the course will be to improve the skills of students in the analysis of complex business/management situations and problems.

Course Description :
The course is an overview of basic principles and theoretical framework leading to sound corporate financial management decisions. The course deals with financial statements, cash flow and taxes with a look at key financial statements, including the balance sheet, income statements and cash flow statements. The course also deals with capital budgeting, risk and return, cost of capital and financial policy, planning and management. Also examined are the various financial ratios and the type of information that they convey to us with regard to the financial health of a business and the process of looking ahead and anticipating the future.

Course Outline:
•  Financial Statements, Cash Flow, and Taxes Depreciation
•  Analysis of Financial Statements
•  Basic theories, concepts, techniques and skills of financial management.
•  Tools for measuring and analyzing the financial performance of a firm.
•  Financial Planning and Forecasting
•  The Financial Environment: Markets, Institutions, and Interest Rates
•  Risk and Rates of Return
•  Time Value of Money
•  Bonds and Their Valuation
•  Stocks and Their Valuation
•  Basics of Capital Budgeting
•  Introduce global markets and their impacts on and linkages with the Global markets.
•  Apply the finance techniques by doing assignments on various financial topics utilizing MS Excel (computer lab) and Stock Investing

Learning Outcomes:
Upon successful completion of the course, students should be able to: 

1. understand basic finance concepts, such as the time value of money, asset valuation, risk and return, capital budgeting, and financial statement analysis.
2. prepare consolidated accounts and explain the accounting principles
3. appropriately employ relevant accounting standards,
4. evaluate a business entity's financial statements and analyze its performance
5. explain the problems of profit measurement and alternative approaches to asset valuations,
6. explain the role of the external auditor
7. develop abilities to read and interpret financial reports, do financial analysis and write financial reports.

 Skills to be developed:
This course helps students in developing the following skills:
1. Communication (Oral & written) Through Assignments, Case Study discussions and
Examinations
2. Analytical Through Case studies and examinations
3. Team Work Through Case studies
4. Creative Thinking Through Case studies, assignments, classroom
discussions
5. Adaptability to Change Through Case studies, and examinations
6. Ethics Through lectures and assignments
7. Use of Information Technology Through use of PCs, Internet, CD-ROM, Statistical
data base in the library
8. International issues Through Case studies, assignments, classroom
discussions, and examinations

Evaluating Student Performance:
Class participation and attendance 10%
Individual assignments 20%
Mid-term examination 20%
Final Exam 50%

Grading:
Percentage Score Letter Grade GPA Points Percentage Score Letter Grade GPA Points

90 – 100 A 4.0 70 - 74 C 2.0
85 - 89 B+ 3.5 65 - 69 D+ 1.5
80 - 84 B 3.0 60 - 64 D 1.0
75 - 79 C+ 2,5 < 60 F 0.0

Educational Resources: 

Course Schedule & Outline:
Sixteen Week Semester, 3 hrs/Wk