78489 - Introduction to Finance

Learning outcomes

The aim of this course is to provide students with a set of analytical and methodological tools and techniques to value financial assets (bonds and stocks) and to choose which project to pursue among several different investment alternatives. At the end of the course students will be able to: (a) adopt different criteria for investment choices under certainty; (b) utilize annuities and amortization plans tools; (c) formulate and solve basic mathematic problems characterizing corporate investment and financial decisions This course is integrated with Fundamentals of Management as the two courses, taken together, provide students with the basics in management and finance; one is complement to the other in allow students understanding basics in general management.

Course contents

The course will cover the following topics:

1. A general introduction to Finance, Investments, and Institutions
2. Simple interest rate & some practical implications
3. Compound interest-concepts & calculations
4. Practical implications of both compound & simple interest
5. Annuities-concepts & basic calculations
6. Time value applications (hand calculation and excel)
   

• Pension plans
• College saving
• Loan and mortgage amortization
• Asset valuation (stocks and bonds)
• Project valuation with Net Present Value (NPV)

     7. Risk and return concept in finance

     8. In introduction to financial econometrics

 

Readings/Bibliography

We will be mainly covering chapters from the following textbook:

Introduction to Finance: Markets, Investments, and Financial Management, 17th Edition (2019), by Ronald W. Melicher and Edgar A. Norton.

Principles of Managerial Finance, 15th Edition (2022), by Chad Zutter and Scott Smart

We can also refer to the following references for specific topics:

The Mathematics of Money: Math for Business and Personal Finance Decisions. for Timothy J. Biehler, 2008 or 2016 editions.

PreMBA Analytical Primer: Essential Quantitative Concepts for Business Math. for Regina Treviño. Palgrave Macmillan 2008.

SUPPLEMENTARY MATERIAL

LECTURE NOTES

Excel applications will be an important part of this course to familiarize students with practical applications in financial modelling.

Teaching methods

1- Lectures by the professor explaining the contents of the course.

2- Excel lab to practice financial modeling

3- A dedicated tutor

Assessment methods

A written exam is expected at the end of the course, composed of multiple-choice questions and exercises.

Excel homework will also be assigned and considered

You need to obtain at least 18/30 to be able to register the final score together with the "Management" score.

• <18 fail
• 18-23: fair
• 24-27: good
• 28-30: very good
• 30 e lode: excellent

Note: only 4 exams are allowed within the same academic year. overpassing the year without passing (18/30 at least) the course requires following again the course.

Teaching tools

1- Professor office hours

1- Professor office hours

2- Online comunications using virtuale, and online lectures when is needed

Office hours

See the website of Murad Harasheh