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 |
Lesson 3 |
Financial investment and physical investment |
φ inv : the cash flows I buy just add up to mine. 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