Principles of Finance

Catalog description

This course is an introduction to financial decision-making in the firm, with a focus on how firms raise and invest funds. The central concept of the course is valuation. After the tools and techniques of valuation are applied to bonds and stocks, the course focuses on how managers choose among competing investment projects with the goal of maximizing the value of their firm's common stock. Finally, the course examines the concepts of risk and diversification and how they relate to expected returns on assets. Throughout, applications of these concepts to personal financial planning are also discussed.