|Section 1||6 p.m. - 7:30 p.m. Room A-51 Monday|
|Section 2||6 p.m. - 7:30 p.m. Room A-53 Wednesday|
|Section 3||6 p.m. - 7:30 p.m. Room A-53 Wednesday
|September 3||Class 1||Introduction to Financial Management: Introduction, overview and course philosophy.
Reading: Ross/Westerfield/Jaffe Chapter 1 & 2
|September 8||Class 2||Financial Markets: The role of the financial markets, the separation of consumption and investment, the separation of investment and financing, present value and future value.
Reading: Ross/Westerfield/Jaffe Chapter 3
|September 10||Class 3||Net Present Value and Introduction to Stocks and Bonds: The rationale for net present value, the power of compounding, perpetuities and annuities.
Reading: Ross/Westerfield/Jaffe Chapter 4
|September 15||Class 4||Valuing Bonds and Stocks: The relation between bond prices and interest rates, yield to maturity, the valuation of stocks, dividends vs. capital gains.
Reading: Ross/Westerfield/Jaffe Chapter 5
|September 17||Class 5||Aternative Investment Rules: NPV vs. payback vs. IRR. The practice of capital budgeting
Reading: Ross/Westerfield/Jaffe Chapter 6
|September 22||Class 6||Capital Budgeting and Project Valuation: Cash flows, inflation, positive NPV.
Reading: Ross/Westerfield/Jaffe Chapter 7,8. Assignment 1 Due
|September 24||Class 7||Capital Markets: Investment Performance Over History
Reading: Ross/Westerfield/Jaffe Chapter 9
|September 29||Class 8||Basics of Return and Risk: The Geography of the Efficient Frontier
Reading: Ross/Westerfield/Jaffe sections 10.1 to 10.7
|October 1||Class 9||Preferences and Investor Choice|
|October 6||Class 10||CAPM: The Portfolio Approach to Risk
Reading: RWJ chapter 10
Homework due: RWJ chapter 9 & 10 problems 9.2,9.5,9.8, 9.18,9.19 10.9,10.20
|October 8||Class 11||Understanding the Security Market Line
Reading: RWJ sections 10.8 to 10.10
|October 13||Class 12||The Arbitrage Pricing Theory
Reading: RWJ chapter 11
Homework due: RWJ chapter 11, 11.2,11.4, 11.8
|October 15||Class 13||Where Do Betas Come From? Leverage and the Discount Rate
Reading: RWJ chapter 12
|October 20||Class 14||Efficient Markets. Reading:RWJ Chapter 13. Assignment Due: Acquira Co.|