- Fall 20 (A)
Financial Analysis --- This course is primarily devoted to fundamentals of financial analysis as applied to both corporate finance and financial markets. On the corporate side, the course deals with capital budgeting in great detail. Capital budgeting criteria (NPV, IRR) and cash flow estimation are discussed. The concept of risk is then introduced and the CAPM is used to derive cost of equity and then, the weighted average cost of capital. The course also provides as introductory treatment of the effects of financing on capital budgeting decisions. On the financial markets side, the course introduces the student to the concepts of competitive capital markets and market efficiency. The workings of the financial markets are explored using the trading room. The principles of equity valuation are also covered. Finally, term structure and bond valuation are discussed.