ECON*2560 - Introduction to Finance

Course Description

This course looks at capital budgeting and long-term finance and investment decisions by firms and individuals. It introduces capital asset pricing under uncertainty and to the concept of efficient markets. A major emphasis is on corporate finance.

Learning Outcomes

By the end of the course, the learner should be able to:

• Describe corporate structure, corporate governance, and the goal of a corporation and how it applies to corporate financial decisions
• Outline the principles and mechanics of the time value of money and calculate the present and future values of various combinations of cash flows
• Determine the value of securities in capital markets and apply statistical measures to measure risk and return of both individual securities as well as a portfolio of securities
• Evaluate and analyse potential investment projects and understand alternative methods for evaluating projects
• Evaluate alternative sources of financing and discuss the firms' choice of capital structure and its implications for the value of the firm
• Examine and discuss the key issues related to dividend policy and their implications for the value of the firm

Course Topics

• The Goals and Functions of Finance
• Value
• Risk
• Capital Budgeting
• Financing, Debt Policy, and Dividend Policy

Assessment

Note: You must receive at least a 50% on the final exam to pass this course. Your term work will only be included in calculating your final grade if you pass the final exam.