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FIN2010: Financial Management (财务管理): Home

Course Description

This introductory finance course develops the basic concepts and tools for making financial decisions.

The course consists of six sections:

(1) time value of money

(2) risk and return

(3) derivatives

(4) capital budgeting

(5) capital structure

(6) personal investment

Recommended Books

Fundamentals of Financial management

A practical introduction to understanding the Financial Management of companies in today's rapidly changing business world. This book is particularly well-suited to introductory courses in financial management, for a professional qualification and as a reference for practitioners. Intended as an introductory course, this text contains updated institutional material which is international in scope and deals with the effects of electronic commerce. It provides tips, questions and answers and special features.

Investments

The book set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts.

Corporate Finance

Using the unifying valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance textbooks. Corporate Finance, Fourth Edition blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager, so we have the knowledge and tools they need to make sound financial decisions in their careers.
 

Recommeded Databases

Learning Outcomes

  • Understand the financial decision-making process and be able to link each topic we learn later in the course with this process.
  • Interpret the impact that financial decisions on firm’s value creation and apply it to solve problems related to project selections and capital structure determination.
  • Obtain basic knowledge of evaluating long-term securities and firm’s projects and apply them 
  1. to price companies’ equities and bonds,
  2. to calculate project’s IRR, NPV, and PI,
  3. to compare and select projects with/without capital constrains.
  • Understand trade-off of risk and return in finance and apply it
  1. to determine the appropriate required rate of return for company’s bonds, preferred stocks and common stocks,
  2. to determine the project required rate of return,
  3. to select project based on risk and return trade-off relation.
  • Understand importance of firm’s capital structure and obtain basic knowledge of what determine firm’s capital structure. Students are expected to apply the knowledge to determine the optimal capital structure for a company and explain why the capital structure we observe in reality may be deviate from the optimal.