Last Update: May 2, 2006
Course Overview:The objective of this course is to provide a rigorous introduction to the fundamental principles of asset valuation and financing in competitive global financial markets. The course is designed to provide an outline of modern finance for those working in the finance arena as well as those working in other disciplines. The course is organized around the four main ideas in finance:
Unit 1: The Time Value of Money and Discounting
Unit 2: Bond Valuation
Unit 3: Equity Valuation
Unit 4: Portfolio Analysis and Diversification
Unit 5: Asset Pricing Models
Unit 6: Investment Decisions and Capital Budgeting
Unit 7: Leverage and the Weighted Average Cost of Capital
Unit 8: Risk Management - Forward and Futures Contracts
Unit 9: International Project Evaluation
Unit 10: Risk Management - Option Contracts
Brealey, Richard A., Stewart C. Myers, and Franklin Allen, Principles of Corporate Finance, 8th edition, McGraw Hill, 2006.
Six assignments, a midterm exam and a final exam.
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David A. Hsieh.