Financial Economics and Capital Budgeting

Catalog description

This course introduces non-business majors to the foundational principles of microeconomics and corporate finance. Roughly 25% of the course will cover the principles of supply and demand, providing students with an in-depth understanding of how markets operate. The focus here will be on the interplay between buyers and sellers, market equilibrium, elasticity, and the factors that influence market behavior. The last 75% of the course will walk students through the process by which managers evaluate whether to invest in a project or not, based on its expected returns and risk. Students will learn about the time value of money and the valuation of stocks and bonds, as well as the fundamentals related to diversification.