Financ Econ/Theory of Value application of financial market value)

Catalog description

This course includes an overview of financial markets and instruments, time value of money, term structure of interest rates, modern portfolio theory, efficient market hypothesis, mechanics of derivatives markets, valuation and hedging principles, and risk management applications. The class will do a deep dive in the financial structure of the firm and will cover the Balance Sheet, Profit and Loss Statement and the Statement of Cash Flows. Included in this class is a detailed financial forecast of a firm; the forecast design will bring all the class concepts into play. The text adds value to the estimates and explains the nuances of a robust financial forecast. The instructor will provide the forecasting Excel spreadsheet on Canvas. The forecasting spreadsheet will require the use of regression analysis.