NCC 5060 - Managerial Finance

Fall. 2.5 credits.

Limited enrollment. Johnson School core course. Non-Johnson students see NCC 5560.

R. Michaely.

Introduces students to the basic concepts of finance. In particular, the course addresses what type of investments firms and individuals should take on and how these investments should be financed. Understanding these concepts is essential to financial managers and professional investors and has important applications to many aspects of financial decisions all of us have to make on a daily basis (e.g., is getting an M.B.A. a good investment?). These issues involve capital budgeting decisions, stock and bond valuation, how to assess and account for risk through the capital asset pricing model (CAPM), option pricing, capital structure and cost of capital, and market efficiency. Grading is based on exams, quizzes, group case reports, homework, and class participation.