Lecture: 3 hours,

Exercise 1 hour

Prerequisites: Managerial Accounting and Costing; Intro to Probability (concurrent).

Goals:

The main goal of this course is to teach about and expose students to the basic concepts in the field of financing, and providing them the skills and methods of the basic Financial Management of the companies.

Topics:

1. Value Calculations (Introduction, Future Value, Present Value)

2. Amortization (equal repayments, Capital + Coupons)

3. Effective Interest (Periodic Interest, Continuously-compounded interest)

4. Inflation (Real interest, Nominal interest, Customer Price Index)

5. Bonds (Face Value, Coupon Rate, Forward-Spot)

6. Projects Valuation (Cash Flows, Sunk Costs, Alternative Costs, Depreciation,

Taxes)

7. Projects Valuation (NPV, IRR, PI, EAV)

8. Assets Valuation (Risks, CML, Portfolio)

9. CPAM Model (Market Portfolio, SML, Efficient/Inefficient Portfolio)

10. Shares Valuation