Honors | Financial Management (SPEA)
V361 | 14045 | Terri Renner
HONORS CREDIT GIVEN ONLY BY ARRANGEMENT WITH PROFESSOR
This course presents the basic theory of financial management and
its application to short and long-term financing decisions by
managers. The theory relates business financial decisions to the
pricing of securities in capital markets. The objective of the
private firm is to maximize the market value of the firm. This is
accomplished through a rational approach to the firm’s investments,
capital structure, and dividend decisions. The link between
corporate financial decisions and capital market prices is explored
in conceptually realistic conditions where outcomes are not known
with certainty and there are limitations to investor information.
Topics covered include: financial statement analysis; time value of
money; capital budgeting concepts and techniques; securities
valuation; cost of capital and optimal capital structure; risk and
uncertainty; investment strategy and portfolio management.
Your objectives should be to learn the basic concepts and
nomenclature; to employ the basic language of finance; to apply the
basic concepts in a sensible manner; and to make relatively
straightforward, but useful computations in an intelligent way.
Governmental finance administrators increasingly interact with the
private capital markets when they make short- and long-term
investments of public funds (including but not limited to cash
balances), manage public employee pension systems (PERS), and sell
governmental debt for capital projects. As such, the material
covered in this course should be regarded as “required knowledge”
for the mid- to senior-level career public finance administrator.