Course Descriptions

Course catalog descriptions for courses offered in all currently published terms.

Finance

 
FIN 591 Financial Management
  2.25 hours Core Terms Offered: P14, P13
  Advisory Prerequisites: Global MBA Students only 
   
  Financial Management --- The course is primarily devoted to the principles of financial valuation. We will first discuss the concept of present value in extensive detail, and then apply the principles of valuation to value (a) real projects (or what is commonly referred to as capital budgeting) and (b) financial securities (stocks and bonds) under certainty. Since financial decision-making virtually always involves risk & uncertainty, we will then introduce the concept of risk, and the relation between risk & return. We will integrate our knowledge of cash flows with our understanding of risk to modify capital budgeting techniques in the presence of risk & uncertainty. The course will end with an introductory treatment of international issues in finance, specifically the role of international parity conditions in cross-border capital budgeting decisions. Although the concepts of competitive capital markets and market efficiency will not be covered in a separate session, they will be woven in the fabric of the course.