Bachelor
2022/2023
Theory of finance-II
Category 'Best Course for New Knowledge and Skills'
Type:
Compulsory course (Economics)
Area of studies:
Economics
Delivered by:
Department of Finance
When:
3 year, 3, 4 module
Mode of studies:
offline
Open to:
students of one campus
Language:
English
ECTS credits:
6
Contact hours:
72
Course Syllabus
Abstract
The first part of the course will be devoted to the corporate finance theory, i.e., to the financial theory of the firm. We will study the principles of optimal investment decisions by the managers of the firms, as well as the importance of choosing optimal capital structure. The second part of the course will be devoted to the theory of asset pricing. We will start with the fundamental theorem of asset pricing, which we then apply to deriving values of various financial securities
Learning Objectives
- focuses on the two basic elements of the modern theory of finance, the corporate finance theory and the asset pricing theory.
Expected Learning Outcomes
- be able to evaluate various investment decisions of the firms’ management
- be able to price various financial instruments
- learn how to evaluate the shared of publicly traded corporations
- learn the key concept of the financial theory of the firm
Course Contents
- Financial Statements
- Discounted Cash Flow
- Capital Investment Decisions
- Stock Valuation
- Risk and Return
- The Capital Asset Pricing Model
- The Arbitrage Pricing Theory
- Cost of Capital
- Market Efficiency
- Capital Structure
- Arbitrage and Equivalent Martingale Measures
- Derivatives
- Binomial Options
- Fixed Income Markets
- Speculative Investor Behavior
Bibliography
Recommended Core Bibliography
- Brealey, R. A., & Myers, S. C. (2012). Principles of corporate finance. Slovenia, Europe: Irwin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BA880E76
Recommended Additional Bibliography
- Kiyoshi Kanazawa, Takumi Sueshige, Hideki Takayasu, & Misako Takayasu. (2018). Kinetic Theory for Finance Brownian Motion from Microscopic Dynamics. Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.arx.papers.1802.05993