This course will allow students to develop a basic understanding of financial decision making. Students will be exposed to the underlying framework of corporate finance including valuation, market efficiency and portfolio theory. The course will survey a set of special topics that includes early venture financing and IPO’s.
Demonstrate knowledge of the role of financial management in a corporation and the financial environment of business.
Explain the time value of money concept and demonstrate the quantitative skills associated with cash flow valuation.
Describe features of bonds and stocks and apply the discounted cash flow technique to value them.
Employ and compare various investment criteria to make investment decisions.
Construct pro forma financial statements and apply the discounted cash flow technique to value entire businesses.
Understand the risk and return trade-off, calculate appropriate risk and return measures, and estimate the cost of capital used in investment and company valuation.
Discuss the theories and real-world considerations related to debt and payout policy.