FINANCIAL ENGINEERING (4 Credits)

Learning Outcomes:

On successful completion of this course, students will be able to: Calculate financial assets value; Use time value of money concepts and rate of return method to select among alternatives (risky and non-risky); Apply cashflow estimation and risk analysis concepts to determine suitable capital structure for a given problem; Use capital working management concepts to select financing policy alternatives; Use binomial lattice model to optimize capital value of standard and non standard option.

Topics:

1. An Overview of Financial Management and the Financial Environment;
2. Risk, Return, and the Capital Asset Pricing Model;
3. Discounted Cash Flow Valuation;
4. Bonds, Bond Valuation, and Interest Rates;
5. Stocks, Stock Valuation, and Stock Market Equilibrium;
6. Options and Corporate Finance;
7. Initial Public Offerings, Investment Banking, and Financial Restructuring;
8. Portfolio Theory, Asset Pricing Models, and Behavioral Finance;
9. Derivatives and Hedging Risk;
10. Mergers and Acquisitions;
11. The Cost of Capital;
12. Cash Flow Estimation and Risk Analysis;
13. Working Capital Management.