A Fundamental Component of Your Financial Comprehension
Financial Management is a course that will build your fundamental understanding of modern financial instruments and principles. If finances and math are intimidating to you, do not worry, this class begins from the foundation so as to enable all students to competently follow along.
In particular, this class focuses on two primary topics, valuation and risk & return. Firstly, the valuation topic will introduce how to analyze a project’s projected cash flows with special attention given to calculating net present value (NPV), an analytical tool which has practical applications far beyond the boundaries of your final exam alone. Within this context you will also learn about stocks, bonds, internal rates of return and more.
Secondly, the risk & return topic works in conjunction with the knowledge you acquire from the valuation topic. Here you will learn about market efficiency, diversification, investment risk, portfolio theory and optimization, and perhaps most preeminently, the capital asset pricing model (CAPM).
The class is taught in lecture style fashion with the edition of a few case studies requiring student pre-class preparation and in-class participation. In addition to this there are also three homework assignments whose understanding is crucial to your success in the final exam. Even if finances are your strong suit, weekly review of lecture material is highly recommended as the knowledge acquired throughout the semester will be compounding.
Financial Management is a topic inevitably intertwined with most MBA student’s lives. Whether it’s though a simple investment or through valuing a key business proposal, the practical application of course material is versatile and pervasive.
P.S. Don’t forget to bring a calculator that can handle exponents!
This course is taught by professor Yen-Cheng Chang, you can browse his profile at the following link
Financial Management course review by Kevan J. Karstunen (2021)