Requires completion of several project assignments. May be repeated as topics change. Special emphasis on a theory of value, the determinants of risk, return and the opportunity cost of capital, applied to both real and financial assets, the study of leverage issues, the exploitation of market inefficiencies, and the development of various tools and economic reasoning which provide the basis for a wide range of corporate financial decisions. Includes the analysis and management of stocks, bonds, mutual funds and other investments, and the nature of security markets. An in-depth study of modern portfolio theory and techniques for the valuation of securities including equity, debt and derivative securities.
Special emphasis is placed on the contingent claims model for security valuation.
The application and valuation of financial securities whose value is contingent on the value of other securities. Topics include the nature of the international financial system, foreign exchange management, investment financing and risk management issues of concern to international businesses. Analysis of financial problems, determination of alternatives, evaluation of alternatives and managerial decision-making. The structure and operation of the primary and secondary mortgage markets, instruments, techniques and strategies in financing real property investments including developing projects. 473 Development of the feasibility process, the major tool used in analysis of investment opportunities, with a view to determining highest and best use.