Course outline
Class Sessions
Fall 2005
Instructor: Robert Conroy
Michael Ho
VALUATION IN FINANCIAL MARKETS
This course will focus on how financial assets and firms are valued in financial markets. While a key objective of the course is to provide valuation skills employed in finance elective courses, the course will also apply valuation models to real financial data and assets. The course is organized in two modules. We open with a module on valuing traded financial assets in the options and fixed income areas. Our focus is on financial assets that have fairly complicated structures. The second module focuses on valuing companies and the implication for their stock prices. In addition, to models introduced in the First Year Finance course, we discuss other valuation approaches and the relative merits of each.
Requirements
During the course students are expected to be prepared for each class. Grading will be based on class participation (25%), periodic graded assignments (25%) and a final exam (50%). Some of the reading assignments will be drawn from Brealey and Myers, Principles of Corporate Finance (7th edition). This text (hereafter BM) is a standard finance text and the finance faculty recommend that students purchase the book as a reference text which will be useful for future finance courses and on the job (Note that this was the same text and edition that was recommended for last year's first year finance course.).