Course: Financial analysis
Semester: 2nd semester, academic year 2010-2011
Course Manager: André Cabannes
Code:
Email: andre.cabannes@m4x.org
Course taught by: André Cabannes
Teaching language: English
Class hours: 18 Credits

 

PRE-REQUISITES

COURSE SUMMARY

COURSE OBJECTIVES

SKILLS ACQUIRED

COURSE SCHEDULE

Lesson1

Correction of last exam

Correction of final exam of Financial accounting

Lesson 2

Difference between accounting and finance

Role of time
Present value of a promise of future payment

Lesson 3

Financial investment and physical investment

φ inv : the cash flows I buy just add up to mine. NPV = 0
phys. inv : the increase of my CF is more than just the CF I buy. NPV > 0

Lesson 4

Modelling of variable future CF. Introduction to elementary probabilities

Securities with sure future CF and with random future CF. Random experiment, random variable, stability of experimental frequencies in long series.

Lesson 5

Elementary probability (cont'd)

Distribution, expectation, histogram, variance

Lesson 6

The no arbitrage principle

Calculation of the price of a security

Lesson 7

Present value, discounting

Discounting future CF of investment

Lesson 8

Opportunity cost of capital

Opportunity cost of capital

Lesson 9

IRR

IRR

Lesson 10

Application of discounting

Polyzone example

Lesson 11

General review

Exercises

Lesson 12

General review

Exercises


TIE-IN WITH THE CORPORATE WORLD

TEACHING METHODOLOGY

ASSESSMENT

READING MATERIALS