This is a survey course of foundational concepts in finance; in particular, students will learn the fundamentals of future cash flow valuation, discounted cash flow analysis and its application to valuation of bonds, stocks, and corporate capital assets. It introduces students to the following topics: bond and stock markets; pricing mechanisms in those markets; relationship between risk and return; capital budgeting methods based on discounted cash flow valuation.
Course Credits: 3
Prerequisites: ACCT 2301 or equivalent and MNGT 2342.
Student Learning Outcomes
By the end of this course, students will be able to:
- Understand the implications of the basic concepts in finance,
- Understand and calculate the time value of money,
- Discount future cash flows to the present,
- Value various financial instruments, like stocks, bonds, etc., using the above concepts,
- Value corporate assets, with the goal to maximize shareholders’ wealth, and
- Apply these concepts and relate them to the current (and future) financial developments.