This course discusses major topics in corporate finance: firms make decisions to increase the value of the firm for their shareholders. In the first part, we will evaluate investment projects and decide whether the firm should take or reject a project. We will also learn how to value bonds and stocks. In the second part, we will study the relationship between risk and returns. Capital asset pricing model, arbitrage and stock options will be introduced. In the third part, we will talk about firms’ capital structure and payout policy. 3 undergraduate hours
Prerequisites (Must be complete BEFORE taking this course):
ECON 102 (Microeconomic Principles)
ECON 103 (Macroeconomic Principles)
MATH 220 or MATH 221 (Calculus 1)
ECON 302 (Intermediate Microeconomic Theory)
Instructors Teaching the Course:
This course is taught by the below faculty ~ you may click on their name to view their website with additional information. Please check the Course Explorer or Enterprise/Self-Service to see what section they will be teaching (teaching schedules vary by semester).
Xing Gao (Advanced Graduate Student), Taught same course Spring 2017
Past Course Syllabi:
The following syllabi are from past semesters and should only be used as a guide for the information covered in the course and general structure of the course. The instructors have the right to change the course for upcoming semesters ~ please refer to the syllabus they distribute the first day of class.
ECON 490 Financial Economics Xing Gao Past Syllabus
View the Course Explorer:
See when the course is offered in upcoming semesters and all the section details:
https://courses.cites.illinois.edu/schedule/terms/ECON/490
Restrictions:
Restricted to ECON Majors. Please see our Fall 2017 Restrictions & Overrides Page for additional information.
Additional Course Information:
The below is helpful information from a discussion with Professor Lee regarding this course. Please keep in mind faculty may change the format of the course each semester, so it is important to follow the syllabus and guidelines for the semester you are taking the course (provided in class).
Is the class discussion or lecture based? How would you describe your teaching style? Lecture-based, standard style.
In what ways are students evaluated/graded (tests -- multiple choice or essay?, papers,etc)?
3 quizzes, 1 final report, 8 problem sets, and class participation.
What careers will your course give students an advantage in?
Financial industry or graduate study.
What are some classes students can take before this to help prepare them for the material?
Intro statistics and probability course.
Would this be a good course to use for a graduate school application?
Yes.
What is your background in Economics or the field you are teaching in?
Econometrics.
How would you consider the workload in comparison to other 400 Level Economics Courses?
Above the average.
What is your attendance/participation policy?
Attendance is randomly checked, and other forms of class participation (asking questions and engaging in discussion may result in bonus credit).
