UMUC-Europe Syllabus

Prerequisites: ACCT 221 and STAT 230. An overview of the principles and practices of organizing, financing, and rehabilitating a business enterprise. Topics include the various types of securities and their usefulness in raising funds; methods of apportioning income, risk, and control; inter-corporate relations; and new developments. Emphasis is on solving problems of financial policy that managers face. Students may receive credit for only one of the following courses: FINC330, BMGT 340, BMGT 341, MGMT 398D, or TMGT 320.

Course Goals/Objectives:

The general objective of this course is to provide you with an understanding of certain basic financial concepts, principles, and procedures related to business entities. When you finish this course, you should be able to: * define the goals of the firm and the philosophy of financial management * demonstrate an understanding of the key financial statements; what they are designed to do; how they are analyzed; and their role in financial planning, forecasting, and budgeting * explain how financial markets operate, and how interest rates are determined and their effect on business decisions * discuss the time value of money and how risk is measured and its effect on asset values and rates of return * explain how to measure the cost of capital and how this information and risk are used to evaluate potential capital investments * explain the theory behind the valuation of stocks and bonds, and calculate their value * discuss long-term and short-term financing decisions to include capital structure theory, dividend policy, the different types of securities, and working-capital management * explain the concepts of financial and operating leverage * describe corporate restructuring through mergers, leveraged buyouts, and divestitures * discuss the differences between multinational and domestic financial management

Course Introduction:

Financial managers are responsible for allocating funds to current and fixed assets. They are in charge of obtaining the best mix of financing alternatives and of developing an appropriate dividend policy within the context of the firm's objectives. These functions are performed on a day-to-day basis as well as through infrequent use of capital markets to acquire new funds. The daily activities of financial management include credit management, inventory control, and the receipt and disbursement of funds. Less routine functions encompass the sale of stock and bonds and the establishment of capital budgeting and dividend plans. The appropriate risk-return trade-off must be determined to maximize the market value of the firm for its shareholders. The risk-return decision will influence not only the operational side of the business (capital versus labor or Product A versus Product B), but also the financing mix (stocks versus bonds versus retained earnings).

Grading Information and Criteria:

A = 90-100% B = 80-89% C = 70-79% D = 60-69% F below 60% Participation/Conduct in Class/Attendance: 18% Comprehensive Problems : 32% Midterm Examination: 20% Final Examination: 30% Total Percentage: 100%

Other Information:

Project Descriptions:

Selected end-of-chapter Comprehensive Problems will be submitted. Each will be due during the session following the associated lecture and is worth 4% of the total course grade (8 x 4% = 32%). Chapter 3: Lamar Swimwear Chapter 4: Mansfield Corporation Chapter 5: Ryan Boot Chapter 7: Logan Distributing Chapter 10: Healthy Products Chapter 11: Southern Textiles Chapter 13: Gibson Appliance Co. Chapter 16: Broadband, Inc.

Academic Policies:

Cases of plagiarism are handled consistent with current UMUC guidelines. See the UMUC policies at the following URL: http://www.umuc.edu/policy/

Course Schedule:

Meeting 1: Chapter 1: The Goals and Functions of Financial Management Meeting 2: Chapter 2: Review of Accounting (Review) and Chapter 3: Financial Analysis Meeting 3: Chapter 4: Financial Forecasting Meeting 4: Chapter 5: Operating and Financial Leverage Meeting 5: Chapter 6: Working Capital and the Financing Decision and Chapter 7: Current Asset Management Meeting 6: Chapter 8: Sources of Short-Term Financing Meeting 7: Chapter 9: The Time Value of Money Meeting 8: Midterm Exam Meeting 9: Chapter 10: Valuation and Rates of Return Meeting 10: Chapter 11: Cost of Capital Meeting 11: Chapter 12: The Capital Budgeting Decision Meeting 12: Chapter 13: Risk and Capital Budgeting Meeting 13: Chapter 16: Long-Term Debt and Lease Financing Meeting 14: Chapter 17: Common and Preferred Stock Financing Meeting 15: Chapter 18: Dividend Policy and Retained Earnings Meeting 16: Final Exam