Syllabus
Main Topics Covered
1. Review of key finance concepts: present value, valuation of bonds and stocks, investment criteria (chapters 2-5).
2. Making investment decisions and project analysis (chapters 6 and
10).
3. Investments, strategy, and economic rents (chapter
11).
4. Risk, return, and the cost of capital: CAPM and APT (chapters 7-9).
5. Efficient markets, corporate financing and how corporations issue securities (chapters 13-15).
6. Payout and debt policies (Modigliani and Miller propositions) and corporate borrowing (chapters 16-18).
7. Introduction to derivative securities: real options (chapters 20-22).
8. Managing risk: forwards and futures (chapter
26).
Annotation
The course provides students with the principles of corporate finance and their practical applications. It covers deeper insight into valuation of bonds and stocks, decision-making within corporations, theory of capital structure and management, and related topics of payout and debt policies.
In addition, the course covers basics of pricing derivative securities and managing risk.