Finance and Financial Management Commons^™

Eco 2200: Module 2, Dorina Tila

Open Educational Resources

Firms and Financial Institutions

• Financial Markets
• Financial Institutions

Eco 2200: Module 3 - 5, Dorina Tila

Open Educational Resources

Time Value of Money

• Calculate future value (FV)
• Calculate effective interest rate and compounding.
• Calculate present value (PV)
• Calculate rate of returns
• Apply time value of money principles to evaluate investment opportunities
• Optional: Calculate amortization

Eco 2200: Module 6, Dorina Tila

Open Educational Resources

Bonds

• Describe the key features of bonds
• Distinguish types of bonds
• Measure yield, assess risk, and bond evaluation.
• Interest rates

Eco 2200: Module 7, Dorina Tila

Open Educational Resources

Risks

• Describe the basic return and risk
• Describe portfolio risk, stand-alone risk, and return and market efficiency

Equity & Options

• Describe features of common stock and preferred stock
• Value common stock (dividend growth model, free cashflow valuation model, and market multiples)

Eco 2200: Module 1, Dorina Tila

Open Educational Resources

Overview of Financial Management, Firms v. Markets

• Objectives of the firm
• Forms of business organizations
• Coase, R.H. (1937). The Nature of the Firm. Economica, 4(16), p. 386-405.

Eco 2200: Module 8, Dorina Tila

Open Educational Resources

Cost of Capital

• Compute the component cost of capital for (a) debt, (b) preferred stock, (c) retained earnings, and (d) new common equity.
• Describe the weighted average cost of capital (WACC) and how it is used to make investment decisions.