This course deals with a number of topics in capital budgeting, such as selecting projects when the amount of capital is limited, constructing cash flows and relating them to the required rate of return, including tax, inflation and debt considerations. A few financing issues, like choosing among alternative loan arrangements and debt versus leasing, are discussed. Methods of dealing with a project's total risk are presented. Furthermore, this course gives an introduction to the functioning of financial markets, including both investors' placement of capital (Investments) and firms' financing and risk management decisions (Corporate Finance). The principles of measuring market risk are introduced and the relationship between risk and expected returns is discussed. The concepts of valuing stocks, bonds and derivatives (options and futures) are presented. The course also focuses on debt and dividend policy as well as on risk management and international financial management.
Ethical issues are presented and discussed explicitly on a number of occasions. During the first lecture, we focus on how organizations, companies and the authorities describe ethical norms. Other examples of ethical considerations are topics related to insider trading and interest conflicts among management, shareholders and creditors. Profitability related to sustainable investments are discussed and conflicts, if any, between sustainability and traditional finance theory will be touched upon.