To learn critically the basic concepts and theories of financial economics. The course begins with a discussion of fundamental concepts including security markets, interest rates, the time value of money, risk analysis and basic security valuation. Subsequently, it aims to explain how financial managers can strive to maximize their firm's values by improving decisions in such areas as capital budgeting, choice of capital structure, financial planning and control, working capital management and long term financing.
Firstly, financial markets, interest rates, the time value of money, risk analysis and the calculation of the values and returns of the basic investment instruments are examined. Then, topics related to the decision-making of financial managers for maximizing the values of their firms are covered.