Business Administration: Managerial Finance

The financial function in the corporation. Techniques for evaluating current use of resources and proposed resource acquisitions or dispositions. Prerequisites: BSAD 060 with a minimum grade of C-, STAT 141 or STAT 143 with a minimum grade of C-, or PSYS 053 with a minimum grade of C- and PSYS 054 with a minimum grade of C-; Business Administration, Computer Science & Information Systems, Engineering Management majors; or Business Administration minor; minimum Sophomore standing.

Prereqs enforced by the system: BSAD 060, STAT 141 or STAT 143 or EC 170 or PSYS 053 and PSYS 054 with a minimum grade of C-; Minimum Sophomore standing; BSAD, CSIS, EMGT majors or BSAD minors; Cannot earn credit for both CDAE 167 and BSAD 180; Open to all Degree and Continuing Education students

The main theme of the course is capital budgeting. Thus, the course is developed based on the notion of the time value of money. Through this development, the course is also a survey of some of the major areas of modern finance: the role of a firm; the role of a manager (agent); the view of a firm being a stream of after-tax cash flows; asset valuation; cash flow estimation; financing methods; costs of capital being a function of systematic risk; and, the estimation of systematic risk in equilibrium.

At the end of this course, students should be able to: 1. Describe the institutional environment in which firms operate. 2. Forecast after-tax cash flows for a firm. 3. Calculate the values of cash flows across time. 4. Calculate returns and riskiness of returns for various assets. 5. Understand the notion of systematic risk. 6. Assess the value of potential investment projects, and make correct decisions on whether or not to proceed with the investment. 7. Describe the sources of capital available to firms, and estimate the cost for various sources.

There will be two exams. The two exams are worth 80% of your grade. 20% of your grade is based on quizzes/attendance/discussion, mini-cases, assignments, and projects.