Course Catalog Description

Introduction

This course provides students with a rigorous introduction to the fundamental principles of finance. The primary concepts covered include the time value of money, principles of valuation and risk. Specific applications include the valuation of debt and equity securities as well as capital budgeting analysis, financial manager’s functions, liquidity vs profitability, financial planning, capital budgeting, management of long term funds, money and capital markets, debt and equity, management of assets, cash and accounts receivable, inventory and fixed assets. Additional topics include derivative markets.

Prerequisites: MGT 600 & working knowledge of statistics A zero credit Statistics boot camp offered to our MBA students. The boot camp could be taken concurrently with this course.

Campus	Fall	Spring	Summer
On Campus	X	X
Web Campus	X	X

Instructors

Professor	Email	Office
Victor Luo	vluo@stevens.edu	Babbio Center Room: 620
Frank Gallucci	fgallucci@whitestone.net

More Information

Course Outcomes

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

Apply knowledge of financial markets, interest rates, risk and return to make sensible capital financing and strategic decisions
Use financial ratios to analyze a company’s financial statements
Estimate the weighted average cost of capital
Perform a capital budgeting analysis
Use futures and options as tools to offset or protect against risk
Better understand the utility of data analytics
Be able to communicate financial topics to a variety of audiences

Course Resources

Textbook

Financial Management: Theory & Practice by Brigham & Ehrhardt, 15th Edition

Grading

Grading Policies

		Weights
1	Team Project: Using AI to create value	50%
2	Team Book Review 1: “The Mathematical Corporation”	15%
3	Team Book Review 2: “Red Notice”	15%
4	Participation	20%

Lecture Outline

	Topic	Readings	Assignments
Week 1	Introduction to course content and materials. Instructor expectations, team formation and assignment explanations	Ch. 1,2,3	Comments and Questions
Week 2	Topic: The Company and Its Environment Tools and Concepts: Opportunity Costs	Ch. 4, 5	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 3	TTopic: Fixed Income Securities Tools and Concepts: Compounding Interest	Ch. 6, 7, 8	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 4	Topic: Stocks and Options Tools and Concepts: Risk and Return	Ch. 9, 10, 11	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 5	Topic: Projects and Their Valuation Tools and Concepts: Cost of Capital	Ch. 12, 13	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 6	Topic: Corporate Valuation and Governance Tools and Concepts: Integrity	Ch. 14, 15	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 7	Topic: Cash Distribution and Capital Structures Tools and Concepts: What is debt? Who provides it?	Ch. 16, 17	Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 8	Topic: Managing Global Operations Tools and Concepts: Global Competitive Analysis, why is it important?	18, 19, 20	Necessary Tool and Concepts Assignment Book Reviews 1 and 2 Team Projec
Week 9	Topic: Tactical Financing Decisions Tools and Concepts: Equity: What is it? Is it expensive?	21, 22, 23, 24	Tools and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 10	Topic: Strategic Finance in a Dynamic Environment Tools and Concepts: Private Equity: What is it? Who provides it?		Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 11	Special Topic: The importance of networking Tools and Concepts: Why “network”? If you should, how should you network?		Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 12	Special Topic: The Liquidity Event		Book Reviews 1 and 2 Team Project
Week 13	Book Review 1: “The Mathematical Corporation”		Book Review 2 Team Project
Week 14	Book Review 2:		Team Project
Week 15	Team Presentations