Finance 335: An Overview at UNCW

Finance 335, commonly known as Corporate Finance, is a core course within the Cameron School of Business at the University of North Carolina Wilmington (UNCW). This course serves as a cornerstone for undergraduate students pursuing a degree in finance, and it’s also valuable for students in related fields like economics and accounting seeking a solid foundation in corporate financial decision-making.

The primary objective of Finance 335 is to equip students with the theoretical knowledge and practical skills needed to understand and analyze financial issues within a corporate context. The course delves into the principles of financial management, focusing on how companies make investment, financing, and dividend decisions to maximize shareholder wealth. Students learn to evaluate financial performance, assess risk, and develop strategies for enhancing firm value.

Key topics covered in Finance 335 typically include:

• Financial Statement Analysis: Understanding and interpreting financial statements such as the balance sheet, income statement, and cash flow statement. This involves analyzing key ratios to assess a company’s profitability, liquidity, solvency, and efficiency.
• Time Value of Money: A fundamental concept in finance, learning how to calculate present and future values of cash flows. This principle underlies many financial decisions, including investment appraisal and loan amortization.
• Capital Budgeting: Evaluating investment projects using various techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Students learn to assess project risk and make informed investment decisions.
• Cost of Capital: Determining the firm’s overall cost of funds, considering both debt and equity financing. This is crucial for evaluating investment opportunities and making financing decisions.
• Capital Structure: Analyzing the mix of debt and equity financing used by a company. Students explore the trade-offs between debt and equity, and the impact of capital structure on firm value.
• Dividend Policy: Understanding how companies decide on dividend payouts and share repurchases. This involves considering the impact of dividend policy on shareholder wealth and firm value.
• Working Capital Management: Managing current assets and liabilities to ensure efficient operations and adequate liquidity.

The course typically employs a combination of lectures, case studies, problem-solving sessions, and potentially group projects. Students are often required to use financial calculators or spreadsheet software like Microsoft Excel to perform calculations and analyze data. Emphasis is placed on applying theoretical concepts to real-world scenarios, enabling students to develop critical thinking and problem-solving skills.

Successful completion of Finance 335 at UNCW often involves demonstrating a strong understanding of core financial principles, the ability to apply these principles to solve financial problems, and effective communication of financial analysis. The knowledge and skills acquired in this course are highly valuable for students pursuing careers in corporate finance, investment banking, financial analysis, and related fields. Furthermore, the foundational understanding of financial decision-making provided by Finance 335 is beneficial for any student seeking to make sound financial decisions in their personal and professional lives.