Mount Royal University - FNCE 3227: Introduction to Finance (Solutions)

Overview:

This course provides an introduction to the theory, methods, and issues of finance. The main topics include the following: 1) time value of money and capital budgeting techniques; 2) uncertainty and the trade-off between risk and return; 3) security market efficiency; 4) optimal capital structure; 5) dividend policy decisions; 6) financial planning and working capital management; and 7) long term financing considerations including leasing.

Prerequisite:

ACCT 2121 - Financial Accounting Concepts

Key Areas of Focus:

• Complete both simple and moderately complex time value of money calculations, such as present value and future value on lump sums, annuities, and variable payment streams.
• Complete a simple corporate financial analysis utilizing financial statements.
• Price and determine expected returns for bonds, common equity, and preferred equity.
• Understand the concepts of risk and return.
• Calculate the cost of capital and the inputs for the cost of capital.
• Solve both simple and moderately complex capital budgeting problems.
• Understand the factors which influence dividend policy.