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.