Finance I

Course Director: Alvin Chen

Overview:

This course aims to provide a basic understanding of financial decisions. The goal of this class is to provide students with a framework for systematically thinking about financial decisions. The topics include financial decision-making, valuation, capital budgeting, market efficiency, and bond pricing.

Format & Structure:

The course is primarily based on lectures and discussions. The lectures will introduce concepts and techniques by presenting formal theories, practical examples, and short case studies. The students will refine their understanding of the material through individual assignments and seminar discussions.

Course administrator: Anneli.Sandbladh@hhs.se

After completing this course, students should be able to:

1. Understand how the time value of money impacts financial decisions

2. Understand the difference between nominal and real interest rates

3. Evaluate investment projects using a variety of methods (NPV, IRR, payback period, etc)

4. Understand the difference between accounting profits and free cash flows

5. Understand what no-arbitrage implies for market efficiency and security prices

6. Value simple, standard financial securities such as bonds

General Entry requirements

**Required Textbook: **

Corporate Finance, by Jonathan Berk and Peter DeMarzo, 6th Edition, published by Pearson.

Older editions of the book will not be “officially” supported, but they contain virtually all of the relevant content. Both textbook versions (without MyLab Finance) should be available at Akademibokhandeln City. Note that this book will also be used for BE402, as well as many classes in the Finance specialization.

MyLab Finance is required to complete the homework assignments and will be provided by SSE separately.

There is a final exam in this course. All students will take the exam at the official time slots (TBA). Approved calculators are allowed on the exam.

Find the course schedule in TimeEdit

Have you been granted educational support because of a documented disability? If so, please contact the course director as soon as possible so that adequate accommodations can be made.

Contact specialneeds@hhs.se if you have questions about being granted educational support or need a copy of your educational support certificate.

For more information, visit the Specific Educational Needs page on the Student Hub (login required).