FNCE 2121
Financial Management

3.0 Credits

Description

Students develop a basic understanding of business finance which deals with how organizations effectively manage their operating and fixed assets and fund them with an optimal mix of debt and equity financing. Topics include financial statement analysis; financial forecasting; working capital management and short-term borrowing; valuing financial assets; cost of capital; capital budgeting and risk; capital markets and sources of long-term financing; dividend policy; and foreign exchange.

Delivery Method

Web-based.

Prerequisites

Recommended:

ACCT 1211-Accounting 1 and ACCT 1221-Accounting 2; or ACCT 2211-Financial Accounting

CMNS 1291-Introduction to Professional Writing

MATH 1071-Fundamentals of Mathematics for Business and Economics

STAT 1201-Introduction to Probability and Statistics

Exclusions

Students who have received credit for BBUS 3121 or FNCE 3120 may not receive further credit for FNCE 2121.

Objectives

By the time students finish their work on this course, they should be able to:

  • Interpret and create standard financial statements.
  • Perform financial statement analysis for the purposes of evaluating and forecasting in financial management.
  • Evaluate a firm's working capital position.
  • Manage the components of working capital to minimize the cost of carrying current assets and the cost of short-term borrowing.
  • Estimate the components of cost of capital by applying time value of money principles.
  • Perform net present value analysis for capital budgeting purposes.
  • Evaluate risk in the capital budgeting process.
  • Demonstrate how the capital markets of Canada impact on a firm's ability to raise funds.
  • Evaluate the cost of debt, preferred stock, and common stock as sources of capital.
  • Evaluate a firm's dividend policy.
  • Recognize the foreign exchange implications involved in international financial management.

Course Outline

  1. Module 1: What Is Financial Management and What Can It Do For Me?
  2. Module 2: How Can Financial Ratio Analysis Help Me Make Better Decisions?
  3. Module 3: How Can Financial Forecasting Improve the Planning and Performance of My Company?
  4. Module 4: What Is Working Capital and Why Is It Important?
  5. Module 5: How Can I Use Cost-Benefit Analysis to Manage My Working Capital Efficiently?
  6. Module 6: How Do I Value My Financial Assets?
  7. Module 7: What is the Required Rate of Return on an Investment?
  8. Module 8: How Should I Evaluate My Investment Choices
  9. Module 9: Applications in Capital Budgeting
  10. Module 10: Selected Topics in Long-Term Financing

Maximum Completion

30 weeks.

Required Text and Materials

Block, Hirt, Short. Foundations of Financial Management. 10th Canadian ed. Toronto, ON: McGraw-Hill Ryerson Ltd, 2015.
Type: ISBN-13: 978-1-25-902497-9

This text comes bundled with Connect and Smartbook Access. The bundle ISBN is: 978-1-25-926101-5

Additional Requirements

A calculator (preferably a financial calculator)

See also Course Delivery Format information on the TRU-OL website: (http://www.tru.ca/distance/services/ online_courses.html#web).

Open Learning Faculty Member Information

An Open Learning Faculty member is available to assist students. Primary communication is through the Learning Environment's "Mail" tool. Students will receive the necessary contact information when starting the course.

Assessment

In order to successfully complete this course, students must obtain at least 50% on the final mandatory examination and 50% overall.

Assignment 1 4%
Assignment 2 4%
Assignment 3 4%
Assignment 4 4%
Assignment 5 4%
Assignment 6 4%
Assignment 7 4%
Assignment 8 4%
Assignment 9 4%
Assignment 10 4%
Final Exam * 60%
TOTAL 100%

* Mandatory