Financial manageme . Course Information Course description Financial Management is a required course for all undergraduates in the School of Management, Fudan University The objective of this course is to provide the students with an understanding of basic theories and tools in finance and how to apply the knowledge in solving corporate financial problem: The course consists of four parts, covering issues related to both financial markets and the firms' financial operations. The first part introduces the basic concepts of finance, discusses the time value of money, and gets the PV formula and the NPv rule. The second part examines the valuation of financial assets(such as bonds and stocks) with the PV formula, and then focuses on real assets valuations, i.e, firms'capital budgeting decisions, in which cash flow analysis, practical investments and sensitivity analysis will all be covered The third part analyzes the risk-return relationship and how cost of equity is determined Specifically, Portfolio Theory and Capital Assets Pricing Model will be introduced. The last part relates to the firms financing decisions, including the methods of financing, WACC and capital structure theories The course requires a great amount of real examples to prove and demonstrate the concepts and theories. In addition to the lecturing, students will be given 3-5 min cases to discuss in the class, which may account for 15-20% of the classroom time. Students will also do 2 after-class case studies in groups and give presentations in the class Students' grading in the course is composed of class participations, case analysis and the performance in the final exam Course Objectives The objective of the course is to help students Understand the basic concepts, theories, principles and approaches in finance Apply the knowledge in valuing different instruments in the financial markets Apply the knowledge in firms on how to make financial decision Course materials Textbook Richard A. Brealey, Steward C. Myers and Franklin Allen; Principle of corporate Finance, 10th Edition 2012 McGraw-hillFinancial Management 2 I. Course Information Course Description Financial Management is a required course for all undergraduates in the School of Management, Fudan University. The objective of this course is to provide the students with an understanding of basic theories and tools in finance and how to apply the knowledge in solving corporate financial problems. The course consists of four parts, covering issues related to both financial markets and the firms’ financial operations. The first part introduces the basic concepts of finance, discusses the time value of money, and gets the PV formula and the NPV rule. The second part examines the valuation of financial assets (such as bonds and stocks) with the PV formula, and then focuses on real assets valuations, i.e., firms’ capital budgeting decisions, in which cash flow analysis, practical investments and sensitivity analysis will all be covered. The third part analyzes the risk-return relationship and how cost of equity is determined. Specifically, Portfolio Theory and Capital Assets Pricing Model will be introduced. The last part relates to the firms’ financing decisions, including the methods of financing, WACC and capital structure theories. The course requires a great amount of real examples to prove and demonstrate the concepts and theories. In addition to the lecturing, students will be given 3-5 min cases to discuss in the class, which may account for 15-20% of the classroom time. Students will also do 2 after-class case studies in groups and give presentations in the class. Students’ grading in the course is composed of class participations, case analysis and the performance in the final exam. Course Objectives The objective of the course is to help students · Understand the basic concepts, theories, principles and approaches in finance; · Apply the knowledge in valuing different instruments in the financial markets; · Apply the knowledge in firms on how to make financial decision. Course Materials Textbook Richard A. Brealey, Steward C. Myers and Franklin Allen; Principle of Corporate Finance, 10th Edition, 2012 McGraw-Hill