Finance (full-time)

Course Description: 

Core for: MA in Economic Policy in Global Markets, MSc in Finance (full-time), MSc in Technology Management and Innovation (full-time)

Elective for: MA in Global Economic Relations (full-time)

The aim of the course is to provide a broad understanding of the principles and techniques of finance, and to apply these to decisions faced by financial managers. The learning objectives will be achieved through the discussion of both theory and real-world applications.

The course is divided into six sections, beginning with the fundamentals of asset valuation and the pricing of financial assets such as bonds and shares. In Section 2, we will introduce techniques to value investments. Section 3 will turn to corporate financing, exploring capital structure (debt vs equity) choice and the cost of capital. Section 4 will discuss the relationship between risk and return, and develop models that underlie the calculation of discount rates used in asset valuation. Section 5 will examine how companies formulate their payout policy to reward shareholders. Finally, Section 6 will provide an introduction to financial derivatives including options.

Understanding the problems covered in the course will be important to all students seeking a career in business. For the importance of finance education please see “Financial Illiteracy Rampant in the Corporate World”, Financial Times 15 Aug 2014.

http://www.ft.com/cms/s/2/eac4fa8a-c0c5-11e3-bd6b-00144feabdc0.html#axzz3JPLI35Rg

Learning Outcomes: 

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Learning outcomes

Core Learning Area

Learning Outcome

Interpersonal Communication Skills

Participate in class discussions and problem solving exercises. Present arguments and findings. Objectively critique findings of fellow students.

Technology Skills

Use of MS Excel tools in problem solving.

Cultural Sensitivity and Diversity

Harness international and professional diversity of students in viewing issues and problems from different perspectives.

Quantitative Reasoning

Apply financial models and formulae.

Critical Thinking

Exercise the powers of inquiry, logical thinking and critical analysis. Interpret and evaluate theoretical arguments and empirical evidence.

Ethics and Social Responsibility

Evaluate and discuss challenges related to corporate governance, social responsibility and ethical and professional behavior.

Management Knowledge and Skills

Attain a broad understanding of the principles and techniques of finance and financial decision making.

Assessment: 

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Grading will be based on the total score out of 100, in line with CEU’s standard grading guidelines.

  • Group project (20%)
  • Class participation and problem solving (20%)
  • Final exam (60%).

Group project

Students will be asked to form groups of 4-5, and analyze a non-financial company of their choice along the broad topics discussed in class. Details will be formally announced and discussed in the first lecture.

Class participation and problem solving

Class participation includes attendance, attitude, and volunteered and cold call responses.

Class practice questions and homework assignments will be posted on Moodle. Students must submit their solutions to the homework assignments on Moodle BEFORE the following class. The solutions will not be marked as such, but late submissions will count towards the class participation mark. The correct solutions will be discussed in class and posted on Moodle.

Final exam

The final exam will be a 90-minute closed-book comprehensive exam covering the entire syllabus. The exam will be held in the final class.

 

Prerequisites: 

None