Syllabus and Course Description
Fall/Spring Semester of the Academic Year of Fall, 2013
Department/
Institute of Business
Course Title：(Chinese) 財務管理
Institute
and Management
Permanent Course
(English) Financial Management
IBM 6014
ID
Instructor: Chiung-Min Tsai
Credits
Required/
Elective
3
Credits
3
Required/Elective
Required competence or courses that must be previously taken by students:
Accounting, Economics
Course Descriptions and Objectives:
The objective of this course is to give students the capacity to understand the theories and apply the techniques
that have been developed in corporate finance. The course touches on all areas of corporate finance, including
the business objective vs. the agent problem, ratio analysis, the trade-off between risk and expected return,
investment valuation, the financing decision, and the dividend policy. All these things fitting together leads to
final firm valuation.
This course will also cover issues related to international financial market and management. The
theoretical and empirical topics include balance of payment, exchange rate determination, how to
manage the currency risk. The course will help students to build up the ability to deal with today’s
global environment and the challenges.
Textbooks
(please specify
titles, authors,
publishers and
year of
publication)
Ross, S.A., R.W. Westerfield, J. Jaffe, Annotated by Cheng-kun Kuo (2013)
Corporate Finance, McGraw-Hill International Editions, 10th ed. 華泰文化。
References：Statistics for Business and Financial Economics by Cheng-few Lee,
John Lee and Alice C. Lee, World Scientific Publishing, 2nd edition, 2000. 華泰
Course Contents
Topics
Part1
Outlines
1. Introduction to
Introduc
Corporate Finance and
tion and
Financial Statement
Valuatio
Analysis
n
2. Investment and Stock
Valuation
Hours
Lectures
9
12
Part2 Risk
3. Risk and Return
6
Part3 Cost of
Capital
4. Cost of Capital, and
Capital Budgeting
5. Dividend Policy
9
6
Demonstration
Remarks
Experiment
Othersi
Part4 Hedging 6. Option, Futures and
Risk
Hedging Risk
9
Description of Course Details:
1. Homework and Assignments: Case Study
2. Exams and Quizzes: Midterm, Final Exam
3. Evaluation and Grading Policy: Case Study 30%; Midterm 30%; Final Exam 40%
Time Slot
Location
Contact Information
Office Hours
Subject to reservation
Faculty Lounge,
0988358880
NCTU Taipei Campus
Syllabus
Week
Contents/Topic
Date
1
Ch1 Introduction to Corporate Finance
2
Ch2-3 Financial Statement Analysis
3
Ch4 Discounted Cash Flow Valuation
4
Ch5 Net Present Value and Other Investment Rules
Ch6 Making Capital Investment Decisions
5
Ch7 Risk Analysis, Real Options, and Capital Budgeting
6
Ch8 Interest Rates and Bond Valuation
7
Ch9 Stock Valuation
Ch10 Risk and Return：Lessons from Market History
8
Ch11 Risk and Return：The Capital Asset Pricing Model
Ch12 An Alternative View of Risk and Return：The Arbitrage Pricing
9
Theory
Ch13 Risk, Cost of Capital, and Capital Budgeting
10
Midterm
11
Ch14 Efficient Capital Markets and Behavioral Challenges
12
Ch16-17 Capital Structure：Basic Concepts, Limits to the Use of Debt
13
Ch18 Valuation of Capital Budgeting h for Levered Firm
14
Ch19 Dividend Policy
15
Part VI Option, Futures, and Corporate Finance
16
Ch25 Derivatives and Hedging Risk
17
Review and Discussion
18
Final Exam
Remarks：
1、Inclusive of visiting institutes/organizations outside the NCTU or other academic events.
2、Please adhere to pertinent regulations/laws on intellectual property rights. Do not
use pirated textbooks.
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