This course provides an introduction to the theory, application and real-world evidence of finance. The course examines financial decisions from two distinct points of view: of an individual investor and of a corporation. From the investor’s point of view, the course focuses on the valuation of financial assets, the formation of portfolios and the relation of risk versus return. From a corporation’s point of view, the course focuses on capital budgeting, capital structure and payout policy with a particular emphasis on long term corporate financing.
By the end of the course, the learner should be able to:
- Describe corporate structure, corporate governance, and the goal of a corporation and how it applies to corporate financial decisions
- Outline the principles and mechanics of the time value of money and calculate the present and future values of various combinations of cash flows
- Determine the value of securities in capital markets and apply statistical measures to measure risk and return of both individual securities as well as a portfolio of securities
- Evaluate and analyse potential investment projects and understand alternative methods for evaluating projects
- Evaluate alternative sources of financing and discuss the firms' choice of capital structure and its implications for the value of the firm
- Examine and discuss the key issues related to dividend policy and their implications for the value of the firm
- The Goals and Functions of Finance
- Capital Budgeting
- Financing, Debt Policy, and Dividend Policy
Prerequisite(s): ECON*1050, (1 of IPS*1500, MATH*1030, MATH*1080, MATH*1200), (1 of ECON*2740, PSYC*1010, PSYC*2010, SOAN*2120, STAT*2040, STAT*2060, STAT*2080, STAT*2120)
Restriction(s): ECON*3460, ECON*3560
|Bloomberg Market Concepts||5%|
|Online Final Exam||35%|
Additional Technical Requirements
This course will use the following:
- Möbius is an online testing and assessment software created by Waterloo Maple Inc. that is used in this course. Visit the MapleSoft website to review the Möbius system requirements.
- Respondus tool to invigilate one or more exams.
- Zoom as a video communication tool. A Webcam, a microphone to record video, and headphones/speakers to play back the recording are also needed.
Please view the Technical Considerations for each.
Applies Towards the Following Certificates
- Certificate in Business : Electives
*Course details are subject to change.