Investment

复旦大学管理学院

School of Management, Fudan University

(Spring 2013)

MANA130004

Financial Management

Course Outline

ZHANG Xiaorong

FANG Shuhong

HUANG Jianbing

ZHOU Xin

Financial Management

I.

Course Information

Course Description

Financial Management is a required course for all undergraduates in the School of

Management, Fudan University.

The objective of this course is to provide the students with an understanding of basic

theories and tools in finance and how to apply the knowledge in solving corporate financial

problems.

The course consists of four parts, covering issues related to both financial markets and

the firms’ financial operations. The first part introduces the basic concepts of finance,

discusses the time value of money, and gets the PV formula and the NPV rule. The second

part examines the valuation of financial assets (such as bonds and stocks) with the PV

formula, and then focuses on real assets valuations, i.e., firms’ capital budgeting decisions, in

which cash flow analysis, practical investments and sensitivity analysis will all be covered.

The third part analyzes the risk-return relationship and how cost of equity is determined.

Specifically, Portfolio Theory and Capital Assets Pricing Model will be introduced. The last

part relates to the firms’ financing decisions, including the methods of financing, WACC and

capital structure theories.

The course requires a great amount of real examples to prove and demonstrate the

concepts and theories. In addition to the lecturing, students will be given 3-5 min cases to

discuss in the class, which may account for 15-20% of the classroom time. Students will also

do 2 after-class case studies in groups and give presentations in the class.

Students’ grading in the course is composed of class participations, case analysis and

the performance in the final exam.

Course Objectives

The objective of the course is to help students

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Understand the basic concepts, theories, principles and approaches in finance;...