|This course provides an introduction to the field of finance and is intended for students who do not plan to work in the finance area but wish to be conversant with the important ideas and tools of finance which they might encounter in the normal course of their careers as consultants or managers.
Most of what one needs to know to understand finance issues in a managerial position is corporate finance, so the course puts somewhat more weight on corporate finance topics than on asset pricing topics. For example, the course covers the basic “Capital Asset Pricing Model” but does not cover several other asset-pricing models that are generally discussed in 35000. Neither does the course delve into the institutional details of various assets or asset markets (such as the markets for derivatives), except as far as these are needed to understand corporate finance issues (for example, some understanding of bond contracts is essential to understand financing issues).
More specifically, aside from the necessary asset-pricing background, the course considers criteria for corporate investment decisions (“capital budgeting”) and provides an introduction to corporate valuation. The course also considers the firm’s financing decisions, namely, what securities to issue and how much to pay out in dividends. The format is primarily lecture, but class discussion is strongly encouraged, and several case write-ups will be assigned. A detailed syllabus will be posted on the University's Blackboard (Chalk) web site for this course as soon as it is available.
|Grades are based on a mid-term exam, a final exam, several case write-ups, and class participation. Students are also expected to complete weekly problem sets from MyFinanceLab. These are not graded, but credit will be given for completing them.
Can be taken pass/fail. No auditors.