F E E D B A C K

FIN401 - Foundations of Finance

IIIT-Delhi

Monsoon 2014

4 credits

Archived Course

Instructor

Abhishek Mani

Teaching Assistants

Nilesh Chander Varshney
POOJA GUPTA
Pawan Sehgal

Info - Foundations of Finance, IIIT-Delhi

Overview

This course is intended to introduce participants and develop a working knowledge of the concepts, problems, tools, and application of corporate financial decision making. It is an introductory course that will define basic concepts used in financial management including risks and returns associated with the investment decisions, allocation of funds, raising of funds, financial management, valuation, financial instruments like fixed income securities & derivatives (options, futures and forwards), financial markets and investments. Students would also gain knowledge of industry analysis, macroeconomic fundamentals and awareness of the impact of the evolving global economy on financial management. Includes case studies and hands on experience with basic spreadsheet model development  

Description

Detailed Course Outline :
Introduction to Financial Management
Risk & Return 
Capital Budgeting 
Cost of Capital 
Capital asset pricing theory and arbitrage -pricing theory 
Leverages
Capital Structure 
Dividend Theory & Policy 
Valuation Concepts and Securities Valuation 
Fixed income securities (bonds)
Financial Statements: Analysis and Interpretation (Accounting Ratios
Indian stock market 
Investment Alternatives
New Issue Market, The Secondary market
Fundamental analysis 
Technical Analysis 

Post Condition
(on student capability after successfully completing the course):

  • Explain and apply the basic principles of financial management.
  • Assess the impact of business financial decisions and the capacity to calculate the value of projected cash flows.
  • Explain the concept of risk as used in finance as well as being able to measure systematic and unsystematic risk.
  • Apply capital budgeting techniques and undertake sensitivity analysis using spread sheets.
  • Locate, obtain and organize information from a variety of sources,
  • Analyze and interpret financial data and utilize this data to make decisions.
  • Macroeconomic fundamentals like interest rates, inflation etc.
  • Excel modeling concepts

Evaluation

End Term Exam : 30%, Mid Term Exam : 20%, Group Projects, Assignments, Surprise Quizes & Class Participation : 50%

Pre-requisites

Probability and statistics

Class Timings

Monday : 3.30 - 5 PM
Wednesday : 3.30 - 5 PM

Office Hours

Monday : 3 - 5.30 PM
Wednesday : 3 - 5.30 PM

Textbooks

 Principles of Corporate Finance ~ Richard A. Brealey (Author), Stewart C. Myers (Author)
Damodaran, Corporate Finance