Finance Class Description

Course Title: Introduction to Financial Principles

Course Description: This introductory finance course provides a foundational understanding of the principles and tools used in financial decision-making. Students will learn to analyze financial statements, evaluate investment opportunities, and understand the fundamentals of corporate finance. The course is designed to equip students with the knowledge necessary for managing personal finances, interpreting financial news, and making informed investment decisions. No prior finance experience is required.

Learning Objectives: Upon successful completion of this course, students will be able to:

• Understand and interpret basic financial statements (balance sheet, income statement, statement of cash flows).
• Apply time value of money concepts to evaluate investments and loans.
• Calculate and analyze key financial ratios to assess a company’s performance.
• Evaluate investment opportunities using net present value (NPV) and internal rate of return (IRR) techniques.
• Understand the concept of risk and return in financial markets.
• Describe the different types of financial markets and institutions.
• Explain the basic principles of corporate finance, including capital budgeting and financing decisions.
• Analyze stock and bond valuations.
• Understand the basics of personal financial planning, including budgeting, saving, and investing.

Course Topics:

• Financial Statement Analysis: Examining the balance sheet, income statement, and statement of cash flows; understanding accounting principles and their impact on financial reporting; using financial ratios to assess profitability, liquidity, solvency, and efficiency.
• Time Value of Money: Present value, future value, annuities, perpetuities, and applications to loans and investments.
• Investment Valuation: Bond valuation, stock valuation, discounted cash flow analysis, and market efficiency.
• Risk and Return: Measuring risk, diversification, portfolio management, and the capital asset pricing model (CAPM).
• Corporate Finance: Capital budgeting, cost of capital, financing decisions, dividend policy, and working capital management.
• Financial Markets and Institutions: Understanding the role of banks, investment banks, insurance companies, and other financial intermediaries.
• Personal Finance: Budgeting, saving, investing, retirement planning, and managing debt.

Assessment: Student learning will be assessed through a combination of the following:

• Homework Assignments: Regular assignments designed to reinforce concepts and provide practice in applying financial tools.
• Quizzes: Short quizzes to assess understanding of key concepts.
• Midterm Exam: A comprehensive exam covering the first half of the course material.
• Final Exam: A comprehensive exam covering the entire course material.
• Case Studies/Projects: Application of financial principles to real-world scenarios. Examples include analyzing a company’s financial performance or creating a personal financial plan.

Required Materials: A textbook on introductory finance is required. Specific edition will be announced at the beginning of the semester. A financial calculator is recommended (e.g., Texas Instruments BA II Plus). Access to a computer with internet and spreadsheet software (e.g., Microsoft Excel) is also required.

Prerequisites: There are no formal prerequisites for this course.

Instructor: [Instructor Name] – [Instructor Contact Information]