Finance

Objectives

On completion of this course a student should be able to: Value investment projects. Understand basic valuation of bonds,
stocks and options. Understand the relationship between risk and return. Understand the relationship between capital
structure and the cost of capital. Estimate the cost of capital for firms and investment projects.

General characterization

Code

67924

Credits

3.5

Responsible teacher

Melissa Porras Prado

Hours

Weekly - Available soon

Total - Available soon

Teaching language

English

Prerequisites

N/A

Bibliography

Required textbook: Briley, Myers & Allen (BMA), “Principles of Corporate Finance”, 11th edition, McGraw-Hill ((previous
editions are also acceptable). Students may use instead alternative textbooks: Ross, Westerfield, Jaffe & Jordan, “Modern
Financial Management”, Ross, Westerfield and Jaffe, “Corporate Finance” or Berk & DeMarzo, “Corporate Finance”.

Teaching method

This is a demanding quantitative course. Students are expected to acquire a clear understanding of financial concepts and
great familiarity with financial techniques.
The course requires careful reading of the textbook and extensive time for exercises.

Evaluation method

Assessment: Mini-test: 10%, Midterm
Exam: 40%, Final Exam: 45%, Written Assignments, Participation: 5%

Subject matter

Present Values. Asset Valuation: Bonds, Stocks. Project Valuation. Risk and Return. Portfolio Theory. CAPM, APT. Cost of
Capital: Financial Leverage, MM. Cost of Capital: WACC. Asset Valuation: Options.

Programs

Programs where the course is taught: