LED1451 FINANCIAL MANAGEMENT
3 Credit Hours
Student Level:
This course is open to students on the college level in either the freshman or sophomore year.
Catalog Description:
LED1451 - Financial Management (3 hrs)
This course is designed to help the student increase his/her knowledge in utilizing financial management as a leadership tool. The course covers the scope and environment of financial management, the valuation of financial assets, investments in long-term assets, capital structure, and working-capital management.
Course Classification:
Lecture
Prerequisites:
None
Controlling Purpose:
This course is designed to help the student increase his/her knowledge in utilizing financial management as a leadership tool.
Learner Outcomes:
Upon completion of the course, the student will be able to describe the scope and environment of financial management, the valuation of financial assets, investment in long-term assets, capital structure and working-capital management.
Unit Outcomes for Criterion Based Evaluation:
The following defines the minimum core content not including the final examination period. Instructors may add other content as time allows.
UNIT 1: The Scope and Environment of Financial Management
Outcomes: The student will gain an understanding of the scope and environment of financial management.
- Explain the ten principles that form the foundations of financial management.
- Define what has led to an era of the multinational corporation.
- Identify the goal(s) of a firm.
- Compare the various legal forms of business organization and explain why the corporate form of business is the most logical choice for a business that is large or growing.
- Describe the corporate tax features that affect business decisions.
- Describe financial markets and interest rates.
- Briefly describe how to measure a company’s cash flow.
- Explain the purpose and importance of financial analysis.
- Describe the limitations of financial ratio analysis.
UNIT 2: Valuation of Financial Assets
Outcomes: The student will gain an understanding of the principles used to determine the valuation of financial assets.
- Briefly explain the mechanics of how money grows over time when it is effectively invested.
- Demonstrate how to move money through time using time value of money tables, financial calculators, and spreadsheets.
- Define and measure the expected rate of return on an individual investment.
- Explain the relationship between and investor’s rate of return on an investment and the level of risk of the investment.
- Briefly describe the process for valuing assets.
- Calculate a stock’s expected rate of return.
- Identify the basic characteristics and features of common and preferred stock.
UNIT 3: Investment in Long-Term Assets
Outcomes: Students will gain an understanding of the concepts pertaining to the investment in long-term assets.
- Briefly describe capital budgeting techniques and practices.
- Describe guidelines by which cash flows are measured.
- Describe the concepts underlying a firm’s cost of capital and the purpose for its calculation.
- Briefly describe how to use the cost of capital to evaluate new investment opportunities.
UNIT 4: Capital Structure
Outcomes: The student will gain an understanding of capital structure.
- Describe the difference between business risk and financial risk.
- Define the concept of an optimal capital structure.
- List and describe the basic tools of capital structure management.
- Describe how business risk and global sales impact the multinational firm.
- Define how to calculate a firm’s degree of operating leverage, financial leverage, and combined leverage.
- Briefly describe the basic concepts of capital structure theory.
UNIT 5: Working-Capital Management
Outcomes: The student will gain an understanding of working-capital management.
- Define the percent of sales forecast method.
- Describe how a cash budget can be used to evaluate the amount and timing of a firm’s financing needs.
- Describe the risk-return trade-off involved in managing a firm’s working capital.
- Briefly describe the determinants of net working capital.
- List and describe the basic sources of short-term credit.
- Describe why a firm holds cash.
- Briefly define various cash management objectives and decisions.
- Discuss the reasons for carrying inventory and how inventory management decisions are made.
Projects Required:
Projects may vary according to the instructor.
Textbook:
Contact Bookstore for current textbook.
Materials/Equipment Required:
Computers and printers.
Internet.
Attendance Policy:
Students should adhere to the attendance policy outlined by the instructor in the course syllabus.
Grading Policy:
The grading policy will be outlined by the instructor in the course syllabus.
Maximum class size:
Based on classroom occupancy
Course Timeframe:
The U.S. Department of Education, Higher Learning Commission and the Kansas Board of Regents define credit hour and have specific regulations that the college must follow when developing, teaching and assessing the educational aspects of the college. A credit hour is an amount of work represented in intended learning outcomes and verified by evidence of student achievement that is an institutionally-established equivalency that reasonably approximates not less than one hour of classroom or direct faculty instruction and a minimum of two hours of out-of-class student work for approximately fifteen weeks for one semester hour of credit or an equivalent amount of work over a different amount of time. The number of semester hours of credit allowed for each distance education or blended hybrid courses shall be assigned by the college based on the amount of time needed to achieve the same course outcomes in a purely face-to-face format.
Refer to the following policies:
402.00 Academic Code of Conduct
263.00 Student Appeal of Course Grades
403.00 Student Code of Conduct
Disability Services Program:
Cowley College, in recognition of state and federal laws, will accommodate a student with a documented disability. If a student has a disability which may impact work in this class and which requires accommodations, contact the Disability Services Coordinator.
DISCLAIMER: THIS INFORMATION IS SUBJECT TO CHANGE. FOR THE OFFICIAL COURSE PROCEDURE CONTACT ACADEMIC AFFAIRS.
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