BASM 422 - Principles of Finance

Credits: 5
Variable Credit Course: No

Lecture Hours: 55
Lab Hours: 0
Worksite/Clinical Hours: 0
Other Hours (LIA/Internships): 0

Course Description: Introduction to the application of financial management principles in the student’s field of interest. Includes the analysis of financial statements for capital decision making and managing working capital (planning and control, equipment purchase and depreciation, budgeting). Covers ways in which financial decisions can be impacted by bias and identifies ways to manage the related risk.

Prerequisite: BASM Dept. Chair permission.
Meets FQE Requirement: No
Integrative Experience Requirement: No

Student Learning Outcomes

Identify major financial management principles such as the importance of cash, time value of money, and return on investments by researching their application in student’s field of interest.
Investigate key principles of organization financing such as capital structures and sources, sources of revenue, working capital management, and financing by researching applications in student’s field of interest.
Assess approaches to managing financial risk, including the impact of bias, by reporting on investment simulations.
Evaluate the tension between financial return and social responsibility by analyzing trends in student’s field of interest.

Course Contents

Capital market theory in financial decision making.
Company performance based on financial statements and other measures and using key financial ratios to provide recommendations.
Long-term investment management concepts to capital budgeting decision making.
Management of working capital to achieve the appropriate value for the firm.
Primary risk/return criteria regarding financial management in business environments.
Applicable legal and regulatory requirements to determine whether organizations meet legal responsibilities and act with social responsibility.
Valuation skills such as NPV, IRR and ARR, to evaluate capital investment projects and overall value of a firm.

Instructional Units: 5