On Friday, June 3rd, I passed out the syllabus. As you begin the course, much of the material in the early part of the course is “supposed” to be review of material that you have seen at some point earlier in your academic and/or professional career. Of course, I know that for some of you, this exposure may have been years ago during a time that you didn’t realize how fun and useful finance can be. These fundamental tools are used over and over in this class, so it’s important that you feel comfortable with these fundamental concepts. If some of these concepts are already familiar to you and you can do some of the problems at the back of the chapters, you can go quickly through the material. But if you need the review (or you need to relearn the material), you can listen to the presentations as many times as you need to.
- Read Chapter 1 as an intro to the course. I've posted some videos discussing some of the material
- Chapter 1 web presentation notes
- An introduction to FIL 440. (8.5 minutes) This presentation gives a quick intro to various topics of financial management.
- Some basic discussion of financial markets
- Read chapter 4 in the textbook on time value of money and watch the presentation on time value of money. Get comfortable using your financial calculator to solve time value of money problems (or your phone app or Excel) . Practice the major types of basic problems at the back of Chapter 4. If you’d like some more examples (i.e., more fun!), do some of the practice problems at the back of the chapter. The first weekend we will do some applications on the time value of money so this material is critical not just for the entire semester, but also the first weekend. And we use our calculators a lot throughout the course, so please bring them or have members of your group bring Excel.
- Chapter 4 web presentation notes
- TVM intro
- Using financial calculator or Excel to solve a basic TVM problem
- TVM examples - practice using financial calculator or Excel
- Discounting and annuities
- Compounding frequency
- Amortized loans
- We will do a review exercise the first night on June 24th
- Here is the amortization spreadsheet that was used in video presentation.
- Review the structure of basic financial statements Chapter 2. Note that while you may be familiar with financial statements, there may be a few differences in some terminology that we will use as a standard in FIL 440. Watch the presentation discussing the basic structure of financial statements. You should at least know the order of items on the balance sheet and the income statement, as well as define each of these items.
- Chapter 2 web presentation notes (NOTE: some of these notes are used for a second presentation on cash flows - see "between the 1st and 2nd weekends below)
- Structure of balance sheet and income statement
- Intro to Chapter 6 looking at risk and return - these presentations review some measurement issues about investments
- Chapter 6 web presentation notes
- Measuring investment returns
- Statistical review. Summarizing return distributions using expected return (average) and standard deviation.
- Discussion of risk/return tradeoff in finance
- Chapter 7 - We will talk about valuing stocks the first weekend, so I've put together:
Date | Subject / Chapters / Materials |
Before June 24 | See above |
June 24 & 25 | Chapter 1 - Goal of financial management Chapter 4 - Time value of money applications Chapter 6 – Risk, return, and CAPM Chapter 7 – Stock Valuation Chapter 3 – Financial Statement Analysis |
Between weekends | Chapter 5 - Bond valuation Chapter 5 notes Bond valuation presentations Chapter 7 – Efficient market hypothesis presentation Chapter 2 - Accounting conventions & cash flow (these notes for this presentation were from Chapter 2 listed above) |
July 8 & 9 | Exam 1 - Sample Exam and Answers Chapter 2 – Financial measures Chapter 12 – Forecasting Chapter 10 – Capital budgeting rules Chapter 11 – Cash flow estimation |
Between weekends | |
July 22 & 23 | Exam 2 Chapter 9 – Cost of capital Chapter 15 – Capital structure Financial risk management A bit of Chapter 17 – Multinational financial management |
After last weekend |
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