Course SummaryFinancial Management studies corporate finance and capital markets, emphasizing the financial aspects of managerial decisions. It touches on all areas of finance, including the valuation of real and financial assets, risk management and financial derivatives, the trade-off between risk and expected return, and corporate financing and dividend policy. The course draws heavily on empirical research to help guide managerial decisions.
Reading Material1. Principles of Corporate Finance
Brealey, R., and S. Myers. Principles of Corporate Finance. 7th ed. Irwin/McGraw Hill.
This is the world's most popular finance textbook. It provides a thorough introduction to financial theory and practice.
(Click the image below for the link to 9th edition 2007)
2. Introduction to Futures and Options Markets
Hull, J. Introduction to Futures and Options Markets. 3rd ed. Prentice Hall, 1998. Hull provides a straightforward introduction to options, futures, and swaps (collectively called financial derivatives). The book discusses the valuation of these securities, the mechanics of trading, and the use of financial derivatives in managing risk.
(Click the image below for the link to Fundamentals of Futures and Options Markets, 5th edition, 2004)
Course Material1. Recitation Notes
a. Discounting (PDF)
b. Project Cashflows (PDF)
c. Firm Valuation (PDF)
d. Statistics of Risk and Return (PDF)
e. CAPM (PDF)
f. Cost Of Capital (PDF)
g. Review (PDF)