Foundations of Corporate Finance Theory (360-1-20)
Instructors
Masako Ueda
Meeting Info
Locy Hall 111: Tues, Thurs 11:00AM - 12:20PM
Overview of class
The course introduces students to the concepts and techniques for analyzing investment alternatives and implementing optimal investment decisions. The course covers the effect of time and uncertainty on decision making. Topics include discounting techniques and applications, stock and bond valuation, asset pricing models, diversification and portfolio choice, capital budgeting, and basic option theory.
Registration Requirements
Econ 281-0, Econ 310-1 and Econ 311-1, and understanding of basic statistics.
Learning Objectives
After completing this course, you are expected to know financial market terminoligy and mathematics, and basic methods of managing your own money and of valuing projects and financial instruments.
Teaching Method
Two weekly lectures plus an enrollment-contingent discussion section per week. Lectures feature introduction/review of fundamental concepts, discussions and problem-solving. Discussion sections cover additional exercise problems and reviews of homework and exams. Sample exams will be provided to help students practice before the actual exam.
Evaluation Method
The course grade will be based upon a combination of problem sets, class contribution, projects, a midterm exam, and a final exam. The problem sets will provide practice with the types of calculations and concepts that are important to a proper understanding of the course material. Students are encouraged to work on the problem sets in small groups. The projects will provide opportunities to apply the course materials to real-life circumstances.
Class Materials (Required)
Corporate Finance, 5th edition, by Jonathan Berk, and Peter DeMarzo (9780134999463). Fourth edition is also okay. Two Cases (A case is a short reading that describes real business stories. It is usually written by business school professors for classroom use. Students will apply the concepts they learn in the class to these real business issues in order to enforce their learning. Each case is usually $3-$4.)
Enrollment Requirements
Enrollment Requirements: Students who have taken or are taking KELLG_FE 310-0 OR BUS_INST 304-0 are not allowed to enroll in this course.
Associated Classes
DIS - Frances Searle Building 2407: Fri 12:00PM - 12:50PM