Foundations of Finance

(4 Credits)

This course covers the main ideas, concepts and tools of analysis used in modern finance, as well as their practical applications. We analyze the core financial decisions made by firms and investors, as well as their impact on the value of firms in asset markets. The main topics we will cover are: the time value of money, the discounted cash flow (DCF) framework, the valuation of bonds and equities, risk and return and portfolio theory, the Capital Asset Pricing Model, capital budgeting, the cost of capital, capital structure and financial policy, and an introduction to options.