Course overview
This course introduces you to the world of modern finance, especially to the financial operations of a business. It covers the concepts of time value of money, basic asset valuation, risk and return paradigm, capital budgeting and financing decisions. Upon completion, students will be able to value bonds and stocks, estimate asset returns according to their risk characteristics and identify capital projects that maximize shareholder's wealth using a wide range of analytical tools. They will also develop a good understanding on how firms finance their capital expenditure.
Course learning outcomes
- Utilise time value of money principles to value bonds and shares.
- Employ various capital budgeting techniques to evaluate investment projects.
- Determine the risk and return of various investment assets.
- Explain and apply the theory of capital structure.