Prerequisites: Intermediate Micro – A, Intermediate Micro - B
This course will provide an introduction to modern financial economics, covering fundamental topics in corporate finance and asset pricing. Among the topics to be discussed are state-contingent prices; NPV; No Arbitrage; the CAPM; the term structure of interest rates; the pricing of bonds, stocks, futures, and options; the Modigliani and Miller Theorem, the Tradeoff Theory of Capital Structure, asymmetric information in financing decisions, and corporate governance.