Lecture 1. Tools, Organization and financial market
1. Bodie, Kane & Marcus, Chapter 2
2. Mishkin, "The Economics of Money, Banking and Financial Markets", Chapter 3.
Lecture 02: Discounted Cash Flow and Present Value (I)
1. Brealey & Myers, Chapter 2 & 3.
Lecture 03: Discounted Cash Flow and Present Value (II)
1. Brealey & Myers, Chapter 2 & 3
Assignment 1 distributed.
The course starts with fundamental topics in finance such as discounted cash flow, pricing of bonds and stocks using cash flow discounting method. Students are also introduced to most critical accounting tools for financial analysis. Next, the course will focus on the second part of fundamental finance which is portfolio theory, including risk and returns, risk diversification, capital market equilibrium, and arbitrage financial investment.
In the third part, students will apply basic learning from part 1&2 to corporate finance analysis. Framework and analytical tools for corporate financial statement will be introduced together with capital structure theory and corporate valuation practices. The last part of the course will be risk analysis and financial derivative instruments. Students will practice risk analysis using Monte Carlo simulation, acquaint themselves with valuation concepts and principles of future contracts, options, and learn how to use these tools in risk management.