This is an introductory course that introduces students to the basic definitions and concepts in managerial finance. Those are essential tools in understanding the fundamental financial problems that business firms face and alternatives they utilize to resolve them. The course begins with discussing basic issues of agency problem and financial environment of a firm and then focuses on the financial strengths and weaknesses of a corporation by analyzing their financial statements (financial ratio analysis.) Time value of money and its application to valuation of bonds and stocks are the next subjects being considered in this course. We then focus on the issues of risk, return, and portfolio diversification, cost of capital, and basics of capital budgeting in a business firm. Towards the end of this course, basic concepts of corporate dividend policy and capital structure are studied.
Field WorkCountry: Germany
Day: 2 - Rostock - Tuesday, 9 September
The Field Lab for this course will consist of travelling from Rostock to Hamburg to visit Hamburg Stock Exchange, Chamber of Commerce, and financial center on September 9, 2014. During this visit, students will have an excellent opportunity to meet and converse with as well as listen to presentations made by some of the finest financial experts in Germany. Academic Objectives: 1. Students will learn about the German banking and financial system from the experts in the field. 2. Students will learn about companies listed on and financial products traded on German financial markets. 3. Students apply the managerial finance concepts they learn in this course to what they learn about German financial markets and institutions from this Field Lab and will submit their written analyses of this experience as a part of the course requirement.