Financial Methods in Act Sci

Catalog description

This course provides an introduction to financial theory and practice as it relates to the management and valuation of publicly-traded companies, and the role of interest rates in capital markets and the economy. Topics include: the corporation and financial markets, financial statement analysis, financial decision making, the time value of money, interest rates, bond valuation and debt financing, fundamentals of investment decisions and capital budgeting, stock valuation, raising equity capital, capital markets and the pricing of risk, optimal portfolios, the Capital Asset Pricing Model, and the cost of capital. ASC 201 is designed to (i) fulfill the Validation by Educational Experience (VEE) requirements of the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) pertaining to Corporate Finance, and (ii) introduce actuarial science majors to the the basic concepts necessary to succeed in ASC 401 (Financial Mathematics) and the SOA Exam FM / CAS Exam 2 sponsored by the actuarial societies. Where appropriate, examples and problems from prior FM/2 exams will be assigned and completed.