This course discusses important topics in finance from the perspective of financial managers, who are responsible for making investments and financing decisions. The concept of net present value, suitably adapted to account for taxes, uncertainty, and strategic concerns, is used to analyze how investment and financing decisions interact to affect the value of the firm. The course provides the theory and practices of corporate financial management covering business organizations, basic financial statements, present value concepts, capital budgeting, long term financing, cost of capital, capital structure and dividend policy. At the end of this course, you will be expected to obtain useful financial knowledge as well as a solid foundation on further advanced finance courses in the future.

One exam(in final exam period) 40%
Assignments 40%
Participation 20%

Total 100%

Fundamentals of Corporate Finance. Ross, S., Westerfield, R., Jordan, B. McGraw-Hill. 13th Ed., 2021. (ISBN : 9781265553609)

Week 1. Feb 20 - Introduction to MSIP501, Ch. 1 : Introduction to Financial Management
Week 2. Feb 27 - Ch. 2 : Financial Statements, Taxes and Cash Flow
Week 3. Mar 5 - Ch. 3 : Working with Financial Statements
Week 4. Mar 12 - Ch. 5 : Time Value of Money
Week 5. Mar 19 - Ch. 6 : Discounted Cash Flow Valuation
Week 6. Mar 26 - Ch. 7 : Interest Rates and Bond Valuation
Week 7. Apr 2 - Ch. 8 : Stock Valuation
Week 8. Apr 9 - Mid-term exam week, Assignment to be given
Week 9. Apr 16 - Ch. 9 : Net Present Value and Other Investment Criteria
Week 10. Apr 23 - Ch. 10 : Making Capital Investment Decisions
Week 11. Apr 30 - Ch. 11 : Project Analysis and Evalution
Week 12. May 7 - Ch. 12 : Some Lessons from Capital Market History
Week 13. May 14 - Ch. 13 : Return, Risk and the Security Market Line
Week 14. May 21 - Ch. 14 : Cost of Capital
Week 15. May 28 - Wrap-up through what have been learned
Week 16. June 4 - Final exam (tentatively on June 4)

· I reserve the right to make changes based on the future agenda. Hence you are responsible for any changes that are announced during the semester.
· I will post the lecture slides at latest the day before every lecture day.
· The ground rule for the final exam will be posted in a timely manner.
· Attendance will not be checked, however, I strongly encourage you to actively participate the classes, where we will deal with some exercises/problem-solving activities. I will grade at the end of the semester how actively you take part in the classes.