FTMBA 2022_II Managerial Finance

This course covers the foundations of financial decision making by relying on a set of simple but powerful ideas. The core idea is the principal of the absence of arbitrage opportunities, or Law of One Price. We rely on this principal and the concept of net present value as the basis of the lectures’ unifying framework. Given the introductory and applied nature of the material, the teaching style combines classical lectures with discussions based on case studies. The instructor expects the participants to read the cases and think about the central problem analyzed in the case prior coming to class. We will discuss the course material together with the questions pertaining to the cases.

• Financial Markets, Financial Institutions, and their Functions
• The Corporation and its Governance
• Mechanics of Discounting / Investment Decision Rules / Capital Budgeting
• Capital Markets and the Pricing of Risk
• Optimal Portfolio Choice and the Capital Asset Pricing Model
• Financial Options (Overview) Investor Behavior and Capital Market Efficiency (Overview)