Fundamentals of Finance

3 Credits · Level: Graduate, Undergraduate

This course is a survey course, designed to explore principal concepts in corporate finance and some topics in personal finance. From the point of view of corporate finance, effective financial management, whether performed by the general manager in a small business or by a finance professional in a large corporation, is necessary for any business to successfully grow. From the point of view of personal finance, understanding how to assess risks of investable assets and how to value investable assets provides you with a preliminary overview of how you might start making investment decisions and managing your wealth. Specific topics are Structure and Governance of Corporate Entities; Principles of Accounting; Financial Statements Analysis; Time Value of Money and Net Present Value; Capital Budgeting Decisions; Stocks, Bonds and Other Financial Securities; Valuation of Financial Securities; Costs of Capital; Capital Structures; Stock Options; Mergers and Acquisitions; Personal Investments and Taxes; and Personal Portfolio Composition. The course focuses on applications of finance to assist students outside the Business School to understand corporate finance. Note: students will not be expected to have prior knowledge of course concepts although an understanding of accounting will be helpful.