To let students get acquainted with the introductory students concepts of investment behavior and corporate finance.|
After having completed the course the student is able to:
PLEASE NOTE: THIS COURSE IS FOR LIBERAL ARTS AND SCIENCES STUDENTS IN THE MAJOR BUSINESS AND ECONOMICS ONLY!
- Understand and Interpret the Firm's accounting statements
- Interpret arbitrage pricing theory and financial decision making
- Understand and interpret different investment decision rules
- To be able to analyze and interpret capital budgeting problems using the time value of money concept
- Understand and to be able to analyze the valuation of bonds and stocks
- Understand and apply the concept of the pricing of risk in capital markets
- Understand and apply the concept of Optimal Portfolio Choice
- Understand the Capital Asset Pricing Model (CAPM)
- Apply the CAPM to estimate the cost of capital
- Interpret and apply the Capital Market Efficiency and Investor Behavior
- Describe and outline the main economic developments in European and Northern American history from the Middle Ages and the Modern Age to the present day
- Understand, interpret and criticize the development of corporate finance and banking from the middle ages up to present days
- Understand, interpret and criticize the financial underpinnings of technological revolutions such as the First and the Second Industrial Revolution
- Understand, contrast and evaluate the causes and the dynamics of banking and financial crises throughout history
- Read, analyze, interpret and criticize primary and secondary source material
In this course students acquire knowledge of and insights into the most important financial decisions taken by the management of business firms. Students also study the methods and techniques that play a role in making these decisions. In a later stage we will focus more on investment behavior of individual investors.
The second part of the course addresses issues related to financial history. The lectures will discuss the evolution of money, banks and corporations over almost 400 years of history. We will study how financial institutions worked in the past, and how they contributed to shape modern financial systems.
A detailed course overview will be provided to the students via a video message on Canvas in the summer of 2020. The exact details of the book will then also be announced. It will be a version of the Berg and Demarzo Book - "Corporate Finance"