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Program Type: 
Non Thesis
Course Code: 
ECON 555
Course Type: 
Course Language: 
Course Coordinator: 
Courses given by: 
Course Objectives: 

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.

Course Content: 

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.

Teaching Methods: 
1: Lecture, 2: Question-Answer, 3: Discussion, 12: Case Study
Assessment Methods: 
A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

1. Understand the basic concepts of financial economics
2. Understand and describe the economic environment in which financial instruments were traded
3. Develop skills in evaluating financial assets
4. Comprehend and use different measures of risk
5. Acquire skills in employing the capital budgeting techniques
6. Learn thoroughly the methods of financial planning and control.

Course Flow

Week Topics Study Materials
1 Introduction  
2 Institutional background  
3 The time value of money  
4 Valuation of fixed income securities  
5 Valuation of common share  
6 Mid-term 1  
7 Asset returns and measures of risk  
8 Capital budgeting techniques  
9 Project cash flow and risk  
10 Mid-term 2  
11 Analysis of financial statements  
12 Financial planning and control  
13 The cost of capital  
14 Short and long term financing  

Recommended Sources

Textbook S. Besley and E. F. Brigham, Principles of Finance, 2012
Additional Resources See the article list


Mid-terms 2 50
Quizzes (attendance, presentation, etc.)   0
Assignments 5 50
  Total 100
Contribution of Final Examination to Overall Grade   30
Contribution of In-Term Studies to Overall Grade   70
  Total 100

Course’s Contribution to Program

No Program Learning Outcomes Contribution
    1 2 3 4 5
1 Formulate and develop a critical and comprehensive understanding of global and national economic problems, and construct and design practical solutions;       x  
2 Extract information and concepts from various disciplines in social sciences and integrate them under the rubric of economics;         x
3 Construct testable hypotheses to find original, practical solutions to various social ills and problems;     x    
4 Develop an analytical understanding of economic problems, and the ability to evaluate the inherent logic, assumptions and conclusions of alternative approaches;       x  
5 Develop the necessary technical skills to evaluate alternative approaches in economics;         x
6 Formulate research projects, plan and conduct research in social sciences in general and in economics in particular;       x  
7 Present the results of their research in national and international conferences and in scientific and professional venues;       x  
8 Apply the scientific / academic modes of thought and analysis to their professional lives and form a bridge between the analytical and abstract modes of thinking of academia and the practical and dynamic skills of business life;       x  


Activities Quantity Duration (Hour) Total Workload (Hour)
Course Duration (Including the Exam Week: 15 x total course hours) 15 3 45
Hours for off-the-classroom study (Pre-study, practice) 15 10 150
Mid-terms 2 10 20
Quizzes (attendance, presentation, etc.)     0
Assignments 5 4 20
Final Examination 1 20 20
Total Work Load     255
Total Work Load / 25 (s)     10.2
ECTS Credit of the Course     10