everything.study
15.401

Managerial Finance

4-0-5 units · Graduate

Introduction to finance from the perspective of business people and finance professionals. Designed to build effective decision-making skills based on sound financial knowledge, focusing on areas such as day-to-day operational issues and management, launching a startup, or negotiating option bonuses. Provides a firm grounding in the modern financial analysis underlying any decision, through three core themes: determining the value of a project, deciding how to finance a project, and managing its risk. Students also hone their ability to negotiate skillfully and speak intelligently about finance. Meets with 15.417 when offered concurrently. Expectations and evaluation criteria differ for students taking graduate version; consult syllabus or instructor for specific details. Some sections are restricted to graduate students only without the permission of the instructor. See syllabus url for further details.

Fall 2008 · Finance Theory I

Topics

  • Introduction and Course Overview
  • Present Value Relations I
  • Present Value Relations II
  • Present Value Relations III & Fixed-Income Securities I
  • Fixed-Income Securities II
  • Fixed-Income Securities III
  • Fixed-Income Securities IV
  • Equities
  • Forward and Futures Contracts I
  • Forward and Futures Contracts II & Options I
  • Options II
  • Options III & Risk and Return I
  • Risk and Return II & Portfolio Theory I
  • Portfolio Theory II
  • Portfolio Theory III & The CAPM and APT I
  • The CAPM and APT II
  • The CAPM and APT III & Capital Budgeting I
  • Capital Budgeting II & Efficient Markets I
  • Efficient Markets II
  • Efficient Markets III & Course Summary

Readings

  • Brealey, Richard, Stewart Myers, and Franklin Allen. Principles of Corporate Finance . 9th ed. New York, NY: McGraw Hill, 2007. ISBN: 9780071266758.
    Listed reading
  • Malkiel, Burton. A Random Walk Down Wall Street . New York, NY: W. W. Norton, 2007. ISBN: 9780393330335.
    Listed reading
  • Bernstein, Peter. Capital Ideas: the Improbable Origins of Modern Wall Street . New York, NY: Free Press, 1993. ISBN: 9780029030127.
    Listed reading
  • Bernstein is one of the most well-respected and influential practitioners in the financial industry, and the founding editor of the Journal of Portfolio Management . This is a lively and beautifully written account of the most important ideas in academic finance, many of which were developed at MIT in the 1960’s and 1970’s.
    Listed reading
  • Bodie, Zvi, Alex Kane, and Alan Marcus. Investments . 8th ed. New York, NY: McGraw-Hill/Irwin, 2008. ISBN: 9780073382371.
    Listed reading
  • The Wall Street Journal ↗
    Listed reading

Prerequisites & course information

Prereq: None G (Fall, Spring) 4-0-5 units Credit cannot also be received for 15.417

Sources