Course Detail

Summer. 3 credits. Letter grades only.

Enrollment limited to: M.M.H. students or permission of instructor. Required.

Faculty teaching this course:

Builds on the prerequisite courses of financial accounting and financial reporting. Topics include applications of discounting techniques, evaluation of capital expenditures, estimation of cost of capital, bond and stock valuation, portfolio theory, asset-pricing models, and capital-structure decisions. The course emphasizes valuation skills as a means to bring together the cost of capital, financing, and operating issues faced by a firm. Students come to understand the financial impact of managerial decisions, know how to differentiate decisions that increase the value of a firm, and know how to properly evaluate investment and financing decisions. They also learn standard techniques of financial analysis, such as discounted cash-flow valuation, capital budgeting, risk analysis, and estimation of the cost of debt and equity.