COMM 298 - Introduction to Finance

The objective of this course is to provide a general understanding of financial valuation and quantitative analysis of corporate and individual financing and savings decisions. We will seek to develop an understanding of what any asset is ‘worth’, and how a variety of conceptual tools can help managers and investors make investment decisions. In the first section of the course, we will explore the time value of money, and learn how investors value streams of cash flows that arrive at different times. Next, we will consider capital budgeting decisions and evaluation of those decisions. Finally, we will explore what may be the most fundamental and perplexing questions facing investors and financial economists alike when we study risk. We will consider what it means for an investment to be risky, and we will examine methods of valuing risky assets.

Learning objectives

Upon successful completion of this course, students will have the knowledge and skills to:

• perform time value of money calculations.
• describe features of financial markets and securities.
• analyze and evaluate corporate and individual financing and investment decisions.
• value riskless and risky assets.

Corequisite: All of COMM 190 (formerly numbered as COMM 290), COMM 293 and one of COMM 295, ECON 201, ECON 301.