The central problem in financial management is the problem
of valuation. How do managers create
value through their actions, policies, and decisions? To understand this problem, the course
studies methods used to value companies, investment projects, and widely used
securities. We will cover how values are
determined in financial markets, or the relation between risk, time,
information and security prices. The
course will conclude with an introduction to how the process through which
firms raise capital, and the types of securities they issue, create or destroy
value.
This
course has three goals:
·
To teach students some basic tools of financial
analysis, which are used in a wide range of managerial settings and career
paths.
·
To provide a foundation for further course work
in finance elective courses.
·
To introduce students to the workings of the
financial system, and thus allow them to better understand a wide range of
issues in corporate and public policy they will face as members of the business
community. (4/11-RG)
