OBJECTIVES
After successfully completing Module 1, you should be able to:
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Discuss the role of the financial manager.
Follow the layout of the text.
Determine the future value and the present value of a sum of money.
Determine the future value and the present value of an annuity.
Determine the interest rate given the beginning and ending amount of money.
Determine the length of time it takes a sum of money to double given the interest rate.
Define the terms found on a balance sheet.
Define the terms found on an income statement.
Compute various financial ratios.
STUDY MATERIALS
Textbook Readings
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Read Chapters 1 and 7 in Basic Finance: An Introduction to Financial Institutions,
Investments, and Management, 10th ed., by Herbert B. Mayo.
Study Notes
The goal of the financial manager is to maximize the value of the firm. This value is reflected by the share price of the firm's common stock. Decisions that increase a firm's value lead to an increase in stock price.
Bad decisions, likewise, lower the stock price. As you go through the textbook, you will find that debt may be good, that time has a money value and money has a time value, and that taxes have an impact on many financial decisions.
Following is a link to chapter study notes:
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ACTIVITIES
Module 1 has two activities. Please consult the course Calendar for the due dates.
Introductions Forum
In the Introductions Forum, start a discussion topic titled "Introductions/[Your Name]." In your posting, please address any of the following topics or anything about yourself that you would like to share with the class so that we can get to know you better.
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Your reasons for taking this course
Your professional experience and interest in finance as a profession
Your background in general
Your experience with online learning
Your expectations from this course
Note: The Introductions Forum is not graded but required.
Written Assignment 1
Complete the following chapter problem set. When preparing your answers, please identify each problem clearly by textbook chapter and problem number. To receive full credit for your answers, you must show all work and include complete solutions.
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