Maui Community College
Course Outline
1.
Alpha and Number:
BUS 318
Course Title:
Principles of Finance
Credits:
Three (3)
Date of Outline:
October 1, 2004 (D. Grooms)
2.
Course Description:
Focuses on financial analysis and management.
Topics include financial statement analysis, discounted
cash flow, financial markets and interest rate
determination, stock and bond valuation models, capital
budgeting, and management of working capital utilizing
manual calculations and spreadsheets. Provides
knowledge of the concepts of risk and return, cost of
capital, and capital structure. Includes international
finance and elements of business ethics
3.
Contact Hours/Type
Three (3) hours/Lecture
4.
Prerequisites:
ACC 202; BUS 120; ECON 130 and 131; MATH 115 and
135; admission to ABIT Program; or consent
Corequisites:
Recommended Preparation:
Approved by
BCIS 161 or ICS 100
Date
2
5.
General Course Objectives
Provides a basic foundation in corporate finance. Includes a review of accounting principles as
they apply to corporate finance, the financial environment of business, valuation of projects,
companies, and investment securities, and how a business allocates financial resources in an
uncertain environment to maximize shareholder wealth.
For detailed information on how BUS 318 focuses on the Maui Community College general
education standards, see the attached curricular grids.
BUS 318 fulfills three credits of the upper division Business core requirement for the ABIT
program.
Student Learning Outcomes
For assessment purposes, these are linked to # 7. Recommended Course Content
On successful completion of this course, the student will be able to
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
s.
identify different forms of business organizations, define the role of the financial
manager, and describe domestic and international financial goals of a firm;
describe the main elements of an Income Statement, Balance Sheet, and the
Statement of Cash Flows, and key components of US and international financial market
systems;
explain the value and limitations of ratio analysis and calculate liquidity, leverage,
profitability, activity, and market ratio analyses;
identify the potential uses, limitations, and ethical considerations of forecasted income
statements, balance sheets, statements of cash flows, and cash budgets; and explain
how these can be used in the planning and budgeting process;
explain the importance of the time value of money in the financial world and its impact on
the value of a firm;
perform calculations of present and future value, growth rates, and loan amortization and
make business decisions based on the results of the calculations;
explain the process of measuring required rate return and the various forms of risk,
including the determination of beta;
discuss the characteristics of bonds and their relationship to interest rates, inflation, yield
to maturity, and valuation;
explain the characteristics of common stock and the rights of stockholders, perform stock
valuation, and explain how investors go about estimating the rates of returns they can
expect to earn;
use decision rules to make capital budgeting decisions and calculate ratios that assist in
capital budgeting decisions: including payback period, NPV, IRR, free cash flow,
profitability index;
identify methods for incorporating risk into capital budgeting;
define cost of capital, and determine the cost of capital for debt and equity financing;
describe the essential elements of US and international financial markets and the Capital
Asset Pricing Model, its assumptions and limitations, the relationship between risk and
expected return, and the meaning of beta;
identify the types of leverage and describe how leverage impacts a company’s decisionmaking process;
explain and use break-even analysis to determine a break-even quantity of output, and
apply sensitivity and scenario analyses to explain break-even point at various level of
output;
conduct EBIT-EPS analysis to determine optimal capital structure;
discuss the Risk-Return Trade-Off as it relates to cash/stock dividends and stock splits
versus stock and/or bond capital structure;
identify and explain the components of dividend policy: including dividend payout ratio
and stability;
explain the importance of managing working capital and describe how the trade-off
between liquidity and profitability affects a firm’s short-term financial policy;
3
t.
u.
6.
7.
prepare a cash budget and discuss how firms can manage their cash inflows and
outflows to maximize value;
define a multinational company and describe the political, financial, ethical, and cultural
risks that affect international operations.
Recommended Course Content and Approximate Time Spent on Each Topic
Linked to # 6. Student Learning Outcomes
1-2 Weeks:
Financial Statements (a, b)
1-2 Weeks:
Financial Ratio Analysis (c, f, g)
1-2 Weeks:
Financial Forecasting, Planning, and Budgeting (d, t)
1-2 Weeks:
Time Value of Money (e, f)
1-2 Weeks:
Risk and Rates of Return (e, g)
1-2 Weeks:
Stock and Bond Valuation (e, h, i)
1-3 Weeks:
Capital Budgeting and Cost of Capital (e, h, i, j, k, m)
1-2 Weeks:
Leverage and Financial Decision Making (m, n, o, p)
0-2 Weeks:
Dividend Policy (q, r)
1-2 Weeks:
Working Capital Management (s, t)
1-2 Weeks:
International Business Finance (u)
0-2 Weeks:
Special Topics (a-u)
Text and Materials, Reference Materials, Auxiliary Materials, and Content
Appropriate text(s) and materials will be chosen at the time the course is offered from those
currently available in the field. Examples include
Texts:
Ross, S. et. Al. 2003. Fundamentals of Corporate Finance, 2003, Mc Graw-Hill, San
Francisco, CA
Brigham, E. & Houston, J. 2004. Fundamentals of Financial Management, ThomsonSouth Western, Mason, OH
Materials:
Text(s) may be supplemented with:
Accompanying practice set if available
Articles and/or handouts prepared by the instructor
Magazine or newspaper articles
Other
Appropriate films, videos or internet sites
Television programs
Guest speakers
Other instructional aids
4
8.
Recommended Course Requirements and Evaluation
Specific course requirements are at the discretion of the instructor at the time the course is being
offered. Suggested requirements might include, but are not limited to
40 – 80%
0 – 30%
0 – 30%
0 – 30%
20 – 40%
0 – 20%
9.
Examinations
In-class exercises
Homework
Quizzes
Projects/research
Attendance and/or class participation
Methods of Instruction
Instructional methods vary considerable with instructors and specific instructional methods will be
at the discretion of the instructor teaching the course. Suggested techniques might include, but
are not limited to
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Quizzes and other tests with feedback and discussion;
Lectures and class discussions;
Problem solving;
PowerPoint presentations;
Videos, DVDs, CD-ROMs;
Guest speakers;
Group activities;
Oral reports and other student presentations;
Games and simulations;
Homework assignments such as
- Reading, or watching, and writing summaries and reactions to financial issues in the
media including newspapers, video, magazines, journals;
- Lectures, web-based material, and other sources;
- Annual report activities;
- Reading text and reference material and answering discussion questions;
- Research environmental issues, and problems;
k. Web-based assignments and activities;
l. Reflective journals;
m. Group and/ or individual research projects with reports or poster presentations;
n. Study logs and study groups;
o. Service-Learning, community service, and/or civic engagement projects and
other contemporary learning techniques (such as problem-based learning).
5
Assessment of Program Student Learning Outcomes - ABIT 2004
Standard 1: Written Communication
ACC
300
BUS
318
MGT
300
MKT
300
1.1 Use writing to discover
and articulate ideas
1
2
2
3
1.2 Identify and analyze the
audience and purpose for
2
2
3
3
any intended communication
1.3 Choose language, style
and organization appropriate
2
2
3
3
to particular purposes and
audiences
1.4 Gather information and
document sources
3
3
2
3
appropriately
1.5 Express a main idea as
a thesis, hypothesis, and
1
1
2
3
other appropriate content
1.6 Develop a main idea
clearly and concisely with
1
2
3
3
appropriate content
1.7 Demonstrate mastery of
the conventions of writing,
1
1
2
3
including grammar, spelling,
and mechanics
1.8 Demonstrate proficiency
in revision and editing
1
0
1
2
1.9 Develop a personal
voice in written
0
0
2
2
communication
Key:
3. Major Emphasis:: The student is actively involved (uses, reinforces, applies, and evaluated) in the student learning outcomes.
The learner outcome is the focus of the class.
2
Moderate Emphasis: The student uses, reinforces, applies and is evaluated by this learner outcome, but it is not the focus of
the class
1. Minor Emphasis: The student is provided an opportunity to use, reinforce, and apply this learner outcome but does not get
evaluated on this learner outcome
0. No Emphasis: The student does not address this learner outcome
6
Assessment of Program Student Learning Outcomes- ABIT 2004
Standard 2: Quantitative Reasoning
ACC
300
BUS
318
MGT
300
MKT
300
2.1 Apply numeric, graphic
and symbolic skills and other
forms of quantitative
3
3
1
1
reasoning, accurately and
appropriately
2.2 Demonstrate mastery of
mathematical concepts,
skills, and applications,
2
3
1
1
using technology when
appropriate
2.3 Communicate clearly
and concisely the methods
2
3
2
2
and results of quantitative
problem solving
2.4 Formulate and test
hypotheses using numerical
0
0
2
2
experimentation
2.5 Define quantitative
issues and problems, gather
relevant information, analyze
3
3
2
3
that information, and present
results
2.6 Assess the validity of
statistical conclusions
1
1
1
2
Key:
3
Major Emphasis:: The student is actively involved (uses, reinforces, applies, and evaluated) in the student learning outcomes.
The learner outcome is the focus of the class.
2
Moderate Emphasis: The student uses, reinforces, applies and is evaluated by this learner outcome, but it is not the focus of
the class
1
Minor Emphasis: The student is provided an opportunity to use, reinforce, and apply this learner outcome but does not get
evaluated on this learner outcome
0
No Emphasis: The student does not address this learner outcome
7
Assessment of Program Student Learning Outcomes - ABIT 2004
Standard 3: Information Retrieval and Technology
ACC
300
BUS
318
MGT
300
MKT
300
3.1 Use print and electronic
information technology
2
2
2
2
ethically and responsibly
3.2 Demonstrate knowledge
of basic vocabulary,
concepts, and operations of
1
1
1
2
information technology and
retrieval
3.3 Recognize, identify, and
define an information need
1
1
2
2
3.4 Access and retrieve
information through print and
electronic media, evaluating
3
2
2
3
the accuracy and
authenticity of that
information
3.5 Create, manage,
organize, and communicate
1
1
2
3
information through
electronic media
3.6 Recognize changing
technologies and make
0
0
1
2
informed choices about their
appropriateness and use
Key:
3
Major Emphasis:: The student is actively involved (uses, reinforces, applies, and evaluated) in the student learning outcomes.
The learner outcome is the focus of the class.
2
Moderate Emphasis: The student uses, reinforces, applies and is evaluated by this learner outcome, but it is not the focus of
the class
1
Minor Emphasis: The student is provided an opportunity to use, reinforce, and apply this learner outcome but does not get
evaluated on this learner outcome
0
No Emphasis: The student does not address this learner outcome
8
Assessment of Program Student Learning Outcomes - ABIT 2004
Standard 4: Oral Communication
ACC
300
BUS
318
MGT
300
MKT
300
4.1 Identify and analyze the
audience and purpose of
1
1
3
3
any intended
communication.
4.2 Gather, evaluate, select,
and organize information for
1
1
3
3
the communication.
4.3 Use language,
techniques, and strategies
1
1
3
3
appropriate to the audience
and occasion.
4.4 Speak clearly and
confidently, using the voice,
volume, tone, and
1
1
3
2
articulation appropriate to
the audience and occasion
4.5 Summarize, analyze,
and evaluate oral
communications and ask
1
1
3
2
coherent questions as
needed.
4.6 Use competent oral
expression to initiate and
0
2
3
2
sustain discussion.
Key:
3
Major Emphasis:: The student is actively involved (uses, reinforces, applies, and evaluated) in the student learning outcomes.
The learner outcome is the focus of the class.
2
Moderate Emphasis: The student uses, reinforces, applies and is evaluated by this learner outcome, but it is not the focus of
the class
1
Minor Emphasis: The student is provided an opportunity to use, reinforce, and apply this learner outcome but does not get
evaluated on this learner outcome
0
No Emphasis: The student does not address this learner outcome
9
Assessment of Program Student Learning Outcomes - ABIT 2004
Standard 5: Critical Thinking
ACC
300
BUS
318
MGT
300
MKT
300
5.1 Identify and state
problems, issues,
arguments, and questions
2
2
3
2
contained in a body of
information.
5.2 Identify and analyze
assumptions and underlying
1
1
3
2
points of view relating to an
issue or problem.
5.3 Formulate research
questions that require
0
0
2
3
descriptive and explanatory
analyses.
5.4 Recognize and
understand multiple modes
of inquiry, including
1
1
2
3
investigative methods based
on observation and analysis.
5.5 Evaluate a problem,
distinguishing between
relevant and irrelevant facts,
opinions, assumptions,
3
3
3
3
issues, values, and biases
through the use of
appropriate evidence.
5.6 Apply problem-solving
techniques and skills,
2
3
3
2
including the rules of logic
and logical sequence.
5.7 Synthesize information
3
3
3
3
from various sources, drawing
appropriate conclusions
5.8 Communicate clearly and
3
3
3
3
concisely the methods and
results of logical reasoning
5.9 Reflect upon and evaluate
1
1
2
2
their thought processes, value
systems, and world views in
comparison to those of others
Key:
3
Major Emphasis:: The student is actively involved (uses, reinforces, applies, and evaluated) in the student learning outcomes.
The learner outcome is the focus of the class.
2
Moderate Emphasis: The student uses, reinforces, applies and is evaluated by this learner outcome, but it is not the focus of
the class
1
Minor Emphasis: The student is provided an opportunity to use, reinforce, and apply this learner outcome but does not get
evaluated on this learner outcome
0
No Emphasis: The student does not address this learner outcome