The main objective of the Principles of Finance course is to introduce students to the basic concepts of finance, including business organization, the role of the finance manager, company analysis, the time value of money, investment decision making, the valuation of stocks and bonds, and an introduction to the measurement of risk and the cost of capital.
Agenda Sessions and Course Syllabus
1. Goals and Governance of the Firm.
2. Financial Markets and Institutions.
3. Accounting and Finance.
4. Measuring Corporate Performance.
5. The Time Value of Money.
6. Valuing Bonds.
7. Valuing Stocks:
8. Net Present Value and Other Investment Criteria.
9. Discounted Cash-Flow Analysis.
10. Project Analysis.
11. Risk, Return and the Opportunity Cost of Capital
12. Risk, Return, and Capital Budgeting
13. Weighted Average Cost of Capital and Company Valuation
Methodology
Lectures will follow closely the structure and content set out in the main textbook `Fundamentals of Corporate Finance´ by Brealey, Myers and Marcus (Published by McGraw Hill).
The book´s web-site - http://highered.mcgraw-hill.com/sites/0073382302/student_view0/ - provides some excellent online resources, including PowerPoint presentations, quizzes, videos and excel templates.
We will aim to cover the content in the first 10 chapters of the book, and an overview of selected material from chapters 11-13. Multiple choice tests will be held regularly in class, and will count towards the final grade, so students are advised to develop a regular study routine.
Students are expected to learn how to use a financial calculator. The Hewlett Packard 10Bll is recommended, and time will be spent familiarizing students with its use.
Students are also expected to become familiar and comfortable with the financial press. The Wall Street Journal is delivered daily to the school, and its reading is recommended.
EVALUATION
The Course grade will be based on the following point breakdown:
10% Attendance and participation
25% Exercises and class tests
30% Mid-term exam
35% Final Exam
Required Textbook
Title: Foundations of Finance, Pearson International Edition. 7th Edition
Author: Arthur Keown, John Martin, & William Petty
Publisher: Prentice Hall / Pearson
Edition: 2011
iChapters: http://www.myfinancelab.com and http://www.pearsonhighered.com/keown/
The required textbook comes with a fully integrated online homework system which will give you the hands- on practice and tutorial help you will need to learn finance efficiently. Ample opportunities for online practice and assessment in MyFinanceLab are seamlessly integrated into each chapter.
Students are expected to learn how to use financial calculators. The Hewlett Packard 10BII is recommended, and time will be spent familiarizing students with its use.