The objective of this course is to provide students with a thorough survey of the principles of finance. The first half of the course focuses on tools and techniques, including Net Present Value Analysis, Financial Asset (Bonds and Stocks) Valuation, Risk and return and Option Pricing. The second half of the course focuses on applications of these tools and techniques on common, important issues in corporate finance, including capital budgeting, determining appropriate capital allocation, dividend policy and share repurchases. Underpinning this entire course is the concept of creating shareholder wealth.
This course is an introduction to the accounting systems used by companies to measure and report their economic performance and financial position to external users such as stockholders, debt holders, and potential investors. It will develop the basic accounting model and then examine it for its strengths and shortcomings. We shall learn how we can use the information provided in the annual reports to make decisions about the firm. By the end of the course, you should be able to read and interpret financial accounting reports.