Dr. H. H. Friedman
Corporation
Finance
TEXTBOOK:
Foundations of Finance:
The Logic and Practice of Financial Management by Arthur J. Keown,
Martin, Petty and Scott, Prentice-Hall, Latest Edition.
Recommended
Software:
We will use Microsoft Excel to solve finance problems.
Sample exams, important terms, and problem sets can be found at the website for
this course: http://academic.brooklyn.cuny.edu/economic/friedman/coursepa.htm
1.
Introduction, axioms of financial
management, financial instruments, puts and calls
Chapters 1, 2
2.
Financial statements, financial ratio analysis
Chapters 3, 4
3.
Time value of money, present value, future value, annuities, perpetuities
Chapter 5
4.
Valuing stocks and bonds, coupon rate vs. yield to maturity
Chapters 7, 8
EXAM
1
5.
Capital budgeting, payback method, NPV method, NTV method, IRR,
profitability index
Chapter 9
6.
Capital budgeting under uncertainty:
adjusting the discount rate, certainty equivalent method
Chapter 10
7. Cost of capital, cost of debt,
cost of preferred stock, cost of common stock, WACC
Chapter 11
8.
Portfolio theory, systematic risk,
beta coefficients, Capital Asset Pricing Model (CAPM)
Chapter 6
9.
Optimal capital structure, net income approach vs. net operating income
approach Modigliani-Miller, break-even analysis, operating leverage, financial
leverage, EBIT-EPS Analysis
Chapter 12
(1) understand
how knowledge of finance is crucial to the success of a business; the importance
of ethics in finance.
(2) be able to apply quantitative skills and
spreadsheets to the solution of finance problems
(3) understand the role of various
financial institutions and financial instruments in the money and capital
markets
(4) learn the vocabulary and
language of finance. This includes
such terms as CAPM, beta of a stock, S&P 500, coupon rate, yield to
maturity, T-bill, zero coupon bond, warrant, puts and calls, P/E ratio, etc.
(5) understand
capital budgeting and learn how to deal with decision making under risk.
The role of risk in financial decisions
(6) learn about the importance of the financing decision and optimum capital
structure
(7) have an understanding of the
importance of the legal and ethical environment in financial decision making.
Learn why the
CFO has a more important responsibility than simply maximizing shareholder
wealth.
(718) 951-5000 x2084; E-mail: x.friedman@att.net
Please note that e-mail is not to
be used to discuss grades.
If you have a problem with a grade, see me during my office hours.
Also, once a grade is given it is illegal to change it (unless there has
been a computational error)—this is a college rule. Also,
I am not permitted to give anyone an extra-credit assignment
after submitting my grades. Cell
phones must be turned off when coming to class.
Website: http://depthome.brooklyn.cuny.edu/economics/infobmf.htm
Disabilities:
In
order to receive disability-related academic accommodations, students must first
be registered with the Center for Student Disability Services.
Students who have a documented disability or suspect they may have a
disability are invited to set up an appointment with the Director of the Center
for Student Disability Services, Ms. Valerie Stewart-Lovell, at 718-951-5538.
If you have already registered with the Center for Student Disability
Services, please provide your professor with the course accommodation form and
discuss your specific accommodation with him/her.