Financial Management and Policy --- This 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 concludes with an introductory treatment of the effects of financing on capital budgeting decisions.
***Non-Ross students should seek permission of the instructor to be considered for enrollment. Students must show accounting experience (ACC 501) to be considered qualified.