GBP (Global Business Program)

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ECN100FB-A5504
Introduction to Finance

Naoki KISHIMOTO

Class code etc
Class code A5504
Year 2020
Faculty/Graduate school GBP (Global Business Program)
Previous Class title
Attached documents
Category 専門教育科目/Subjects of Business Administration
専門基礎科目/Introductory Subjects of Business Administration
Term 秋学期授業/Fall
Credit(s) 2
Day/Period 月3/Mon.3
Campus 市ヶ谷 / Ichigaya
Grade 1~4
Notes
Open Program
Global Open Program
Interdepartmental class taking system for Academic Achievers
Class taught by instructors with practical experience

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Outline and objectives

Students are given an introduction to interest rate computation and investment analysis of stocks and bonds.

Goal

(1) Students can compute present values and future values.
(2) Students can use basic terms of bonds and bond investments.
(3) Students can compute bond prices based on yields to maturity. Conversely, students can compute yields to maturity based on bond prices.
(4) Students understand major sources of risk in bond investments.
(5) Students can use basic terms of stocks and stock investments.
(6) Students can compute fair values of stocks using the dividend discount model.

Which item of the diploma policy will be obtained by taking this class?

This course is strongly related to the "DP1-1", "DP2-1", "DP2-2" and "DP4" diploma policies and fairly related to the "DP1-3" policy.

Default language used in class

英語 / English

Method(s)(2020年度はオンライン授業の実施に伴い、変更の可能性があります。変更は学習支援システム等で提示します。/Method(s) may change depending on the online lesson.Changes will be reflected in the Learning Management System, etc.)

This class consists of a series of lectures. Yet, the instructor intends to make this course as interactive as possible by asking students questions and giving students time to apply formula to exercise problems in class.

Also, note that lectures are given in English. Yet, I will proceed with lectures very slowly, so that well-motivated Japanese students can understand them.

Active learning in class (Group discussion, Debate.etc.)

なし / No

Fieldwork in class

なし / No

Schedule

※各回の授業形態は予定です。教員の指示に従ってください。

1:Overview of this course

I will give an overview of this course and explain how I manage the class.

2:Corporations and stock market

I will explain the basic organizational structure of a corporation and how corporationns interact with stock and bond markets.

3:Interest rates, future values, and present values

I will explain how to compute future values and present values.

4:Interest rates, future values, and present values

I will explain the annuity computation.

5:Interest rates, future values, and present values

I will explain how to compute the internal rate of return.

6:Interest rates, future values, and present values

I will explain interest rate quotes and discount rates.

7:Basic terms for bond investments

I will explain basic terms of bonds and bond investment.

8:Yield to maturity

I will explain how to compute the yield to maturity.

9:Yield to maturity

I will explain the relationship between yield to maturity and the bond price.

10:Factors affecting bond prices

I will explain major factors that affect bond prices as well as basic investment strategies for bonds.

11:Basic terms for stock investments

I will explain basic terms of stocks and stock investments.

12:Stock valuation

I will explain basic valuation methods for stocks. Specifically, I will explain dividend discount model.

13:Stock valuation

I will discuss how to estimate dividends, share repurchases and total payout model.

14:Final examination

I will give a final examination in class.

Work to be done outside of class (preparation, etc.)

Students must complete reading assignments before class. In addition, students must submit home work assingments on due dates. Preparatory study and review time for this class are 4 hours all together.

Textbooks

Jonathan Berk, Peter DeMarzo, and Jarrad Harford, Fundamentals of Corporate Finance, latest editio (Global Edition), Pearson Education.

References

Richard Brealey and Stewart Myers, Principals of Corporate Finance, McGraw Hill (any recent edition).
Richard Brealey, Stewart Myers and Alan Marcus, Fundamentals of Corporate Finance, McGraw Hill (any recent edition).
Stephon Ross, Randolph Westerfield and Jeffrey Jaffee, Corporate Finance, McGraw Hill (any recent edition).
Stephon Ross, Randolph Westerfield and Bradford Jordan, Fundamentals of Corporate Finance, McGraw Hill (any recent edition).
Stephen Ross, Randolph Westerfield and Bradford Jordan, Essentials of Corporate Finance, McGraw Hill (any recent edition).
Thomas Copeland, Fred Weston, and Kuldeep Shastri, Financial Theory and Corporate Policy, Addison Wesley (any recent edition).

Grading criteria

70% based on quizzes given in class and and 30% on class participation.

Changes following student comments

I will cover less topics this year than last year to give more time to each topic to be covered.

Others

To gain better understanding of finance courses, including this course, you are strongly encouraged to take Introduction to Accounting and Introduction to Statistics in your first year at Global Business Program.
In addition, this course uses basic mathematics, which will be explained in class very carefully. So, well-motivated students who are not well prepared in mathematics can understand the contents of this class well.
Please note that if the number of students showing up in the first class significantly exceeds the expectation of the instructor, the instructor will limit the number of students who are allowed to enroll in this course in order for the instructor to effectively teach the class,

Prerequisites

None

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