Review the contents of the stockholders report
and the procedures for consolidating international
Understand who uses financial ratios and how.
Use ratios to analyze a firms liquidity and activity.
Understand tax depreciation procedures and the effect
of depreciation on the firms cash flows.
Discuss the firms statement of cash flows, operating
cash flow, and free cash flow.
Understand the financial planning proc
Discuss the role of time value in finance, the
use of computational tools, and the basic
patterns of cash flow.
Understand the concepts of future value and
present value, their calculation for single
amounts, and the
Differentiate between debt and equity.
Discuss the features of both common and
Describe the process of issuing common stock,
including venture capital, going public, and
Interest Rates and Required Returns:
Nominal or Actual Rate of Interest (Return)
The nominal rate of interest is the actual rate
of interest charged by the supplier of funds and
paid by the demander.
The nominal rate differs from the real rat
Understand the role that financial institutions play
in managerial finance.
Contrast the functions of financial institutions and
Describe the differences between the capital
markets and the money markets.
Describe interest rate fundamentals, the term structure of
interest rates, and risk premiums.
Review the legal aspects of bond financing and bond cost.
Discuss the general features, yields, prices, popular types,
Risk and Return
Learning Goals (cont.)
Understand the risk and return characteristics of
a portfolio in terms of correlation and
diversification, and the impact of international
assets on a portfolio.
Review the two ty
BUS 321- Business Finance (3 credits)
Course Outline Fall 2016
School of Business and Information Systems York College
This is homework 2. It covers chapters 3 and 4 of the textbook. It should be typed and make sur
Define finance and the managerial finance function.
Describe the legal forms of business organization.
Describe the goal of the firm, and explain why maximizing the
value of the firm is an appropriate goal for a business.