FNCE101

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Finance

Course (UG/PG)

Undergraduate

Offering Unit/Department

Course Description

The course helps students understand the various financial activities undertaken by a firm to create value for its shareholders. Students will be taught key financial tools and concepts relevant for managers, investors, and stakeholders in making sound financial decisions. The topics covered include time value of money, investment appraisal techniques, cost of capital, risk-return tradeoff, diversification, asset pricing, and options. The foundational knowledge acquired here will enable students to understand finance from the perspective of company managers as well as finance from the perspective of investors.

Course Learning Outcomes

By the end of this course, students will be able to:

Describe the important role of financial management decisions for business, society, and sustainability
Understand basic financial statements
Solve time value of money problems
Know and use different investment appraisal techniques and understand capital raising and cost of capital concepts
Estimate the values of bonds, common stocks, and preferred stocks
Understand investment returns, diversification, the risk-return tradeoff, and the capital asset pricing model
Understand fundamentals of the Modigliani and Miller (MM) theory of capital structure
Define options and understand their pricing and payoffs

Discipline-Specific Competencies

Capital Budgeting and Other Corporate Investment, Capital Structure Choice, Firm Fundamental Analysis, Risk and Return Analysis and Modelling, Valuation

SMU Graduate Learning Outcomes

Multidisciplinary knowledge, Interdisciplinary knowledge, Critical thinking & problem solving, Collaboration and leadership, Communication, Ethics and social responsibility, Self-directed learning

Grading Basis

GRD - Graded