Section 1 | 6 p.m. - 7:30 p.m. Room A-51 Monday Teaching Asistants: |
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Section 2 | 6 p.m. - 7:30 p.m. Room A-53 Wednesday Teaching Assistants: |
Section 3 | 6 p.m. - 7:30 p.m. Room A-53 Wednesday |
September 3 | Class 1 | Introduction to Financial Management: Introduction, overview and course philosophy. Reading: Ross/Westerfield/Jaffe Chapter 1 & 2 |
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September 8 | Class 2 | Financial Markets: The role of the financial markets, the separation of consumption and investment, the separation of investment and financing, present value and future value. Reading: Ross/Westerfield/Jaffe Chapter 3 |
September 10 | Class 3 | Net Present Value and Introduction to Stocks and Bonds: The rationale for net present value, the power of compounding, perpetuities and annuities. Reading: Ross/Westerfield/Jaffe Chapter 4 |
September 15 | Class 4 | Valuing Bonds and Stocks: The relation between bond prices and interest rates, yield to maturity, the valuation of stocks, dividends vs. capital gains. Reading: Ross/Westerfield/Jaffe Chapter 5 |
September 17 | Class 5 | Aternative Investment Rules: NPV vs. payback vs. IRR. The practice of capital budgeting Reading: Ross/Westerfield/Jaffe Chapter 6 |
September 22 | Class 6 | Capital Budgeting and Project Valuation: Cash flows, inflation, positive NPV. Reading: Ross/Westerfield/Jaffe Chapter 7,8. Assignment 1 Due |
September 24 | Class 7 | Capital Markets: Investment Performance Over History Reading: Ross/Westerfield/Jaffe Chapter 9 |
September 29 | Class 8 | Basics of Return and Risk: The Geography of the Efficient Frontier Reading: Ross/Westerfield/Jaffe sections 10.1 to 10.7 |
October 1 | Class 9 | Preferences and Investor Choice |
October 6 | Class 10 | CAPM: The Portfolio Approach to Risk Reading: RWJ chapter 10 Homework due: RWJ chapter 9 & 10 problems 9.2,9.5,9.8, 9.18,9.19 10.9,10.20 |
October 8 | Class 11 | Understanding the Security Market Line Reading: RWJ sections 10.8 to 10.10 |
October 13 | Class 12 | The Arbitrage Pricing Theory Reading: RWJ chapter 11 Homework due: RWJ chapter 11, 11.2,11.4, 11.8 |
October 15 | Class 13 | Where Do Betas Come From? Leverage and the Discount Rate Reading: RWJ chapter 12 |
October 20 | Class 14 | Efficient Markets. Reading:RWJ Chapter 13. Assignment Due: Acquira Co. |