Course Description
Valuation models and techniques used in corporate finance decision-making. Emphasis is placed on understanding the determinants, structure, assumptions, and implications of valuation models used by firms to decide what projects to undertake, how to finance the projects, and their payout policies. This course is not calculus based.
Athena Title
Fina Value for Non-Fina Majors
Equivalent Courses
Not open to students with credit in FINA 4200
Prerequisite
FINA 3000 or FINA 3000H or FINA 3000E or FINA 3001 or FINA 3001H or FINA 3001E
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
This is an advanced finance valuation class for non-finance business majors. Thus, the techniques of valuation, which are an integral part of many finance classes are new to these students, having been exposed only in a simple sense in the Introduction to Finance class. The goal is to allow a non- finance student to work with and use valuation models developing a framework for calculating and using valuation techniques. Valuation models are useful in many applications in the real world and fit well with the learning in their other majors. Valuation is fundamental to business decisions. The techniques the students will work with and apply include: 1) Weighted cost of capital 2) Stock and bond pricing 3) Option pricing 4) Financial ratios and financial statement analysis 5) analysis of comparable firms
Topical Outline
Financial statements Financial forecasting of cash flows from financial statements Time-value of money Capital budgeting Cost of capital Stock and bond pricing Option valuation Capital structure Payout policy