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Corporate Finance (304-0-20)

Instructors

Zhengyang Jiang
Global Hub 4389
I am an Assistant Professor of Finance at Kellogg School of Management, Northwestern University and a Faculty Research Fellow at the National Bureau of Economic Research (NBER). My research focuses on international finance and macroeconomics. My main line of inquiry is about the government's role in the provision of currencies and safe assets. I use financial valuation-based tools to study the monetary, exchange rate, and real consequences of government borrowing, and to evaluate the government's fiscal capacity and sustainability. A related topic of my focus is how the currencies and safe assets are intermediated in the international monetary system, how they generate a liquidity premium in this intermediation process, and how this process is affected by the monetary policy. In the broader field, I also work on the asset pricing theories of exchange rates, and the roles international trade, incomplete markets, and portfolio allocation play in such theories.

Meeting Info

Frances Searle Building 1421: Mon, Wed 9:30AM - 10:50AM

Overview of class


*INFORMATION IS SUBJECT TO CHANGE*


The instructor of this course is Zhengyang Jiang.


Effects of time and uncertainty on valuation and decision making. Discounting techniques, stock and bond valuation, capital budgeting, firm valuation, capital asset pricing model, financial options.


BUS_INST 304 answers managers' and investors' most fundamental finance question: how should a project or
an asset be valued? Managers must determine the value of building a factory, entering a new market, or
purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the
value of financial securities to decide how to invest their wealth. Using a combination of lectures and
business cases, BUS_INST 304 teaches the discounted cash flow and multiples methods to value projects or
assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.

Registration Requirements

Prerequisites: ECON 201, 202, STAT 210 or equivalent, MATH 212 or 220, BUS INST 301

May not receive credit for both this course and ECON 360-1. Not for students who have previously taken KELLG_FE 310-0.

Evaluation Method

Your grade in the course will be based on 20% video quizzes, 25% five group case studies, 15% midterm,
30% final, 5% class participation, 5% peer review.

Class Materials (Required)


  1. Title: CORPORATE FINANCE
    Edition: 5
    Author: Berk & DeMarzo
    ISBN: 9780135636015
    Publisher: PEARSON
    Estimated Price (New, hard copy): $159.99
    *See textbook acquisition instructions posted on the Canvas website for details on how to acquire access to MyFinanceLab and a loose-leaf version of the text at a reduced price of $123.99.

  2. There will be a study.net course packet available for purchase online. Approximate cost will be: $20

    3. Class Notes

    There are no waitlists for BUS_INST courses. If the class closes before your registration time, please check back.

    For more information, please view sample syllabus: https://businessinstitutions.northwestern.edu/courses/course-descriptions/index.html

    Class Attributes

    Attendance at 1st class mandatory

    Enrollment Requirements

    Enrollment Requirements: Prerequisite: Students must have credit for ECON 201, ECON 202, STAT 210, MATH 218-1 or 220-1, and BUS_INST 301, or equivalent courses. Students that previously took KELLG_FE 310-0 may not register for this course.

    Associated Classes

    DIS - Tech Institute Lecture Room 4: Wed 4:00PM - 4:50PM