GBPGBP (Global Business Program)

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

(1) Students can compute present values and future values.
(2) Students can use basic terms of bonds and bond investments.
(3) Students can compute yields to maturity based on bond prices. Conversely, students can compute bond prices based on yields to maturity.
(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.

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.

英語 / English

This class consists of a series of lectures. Yet, the instructor intends to make them as interactive as possible by throwing questions to students and earmarking class time for students to apply formulae to exercise problems.
Also,I will try to speak slowly, so that well-motivated Japanese students can understand my lectures.
Furthermore, I will provide students with feedback on additional exercise problems that students are supposed to solve at home.

なし / No

なし / No

授業形態/methods of teaching：対面/face to face

※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[オンライン/online]：Overview of this course, corporations and stock market

I will give an overview of this course. In addition, I will explain basic organizational structures of corporations.

2[対面/face to face]：Interest rates, future values, and present values

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

3[対面/face to face]：Interest rates, future values, and present values

I will explain the FV and PV computation of a perpetuity.

4[対面/face to face]：Interest rates, future values, and present values

I will explain the FV and PV computation of an annuity.

5[対面/face to face]：Interest rates, future values, and present values

I will explain how to compute the FV of a growing perpetuity. In addition, I will explain how to solve loan payments and the internal rate of return.

6[対面/face to face]：Interest rate quotes and discount rates

I will explain interest rate quotes.

7[対面/face to face]：Interest rate quotes and discount rates

I will explain interest rate quotes more. In addtion, I will discuss discount rates and loans.

8[対面/face to face]：Introduction to bonds

I will explain basic terms of bonds and bond investment.

9[対面/face to face]：Yield to maturity

I will explain how to compute the yield to maturity.

10[対面/face to face]：Financial market

We discuss why bond prices change.

11[対面/face to face]：Stock valuation

I will explain basic terms of stocks and stock investments. In addition, I will explain basic valuation methods for stocks, i.e. the dividend discount model.

12[対面/face to face]：Stock valuation

I will explain limitations of dividend discount model. In addition, I will discuss share repurchases.

13[対面/face to face]：Financial statements

I will discuss major items on balance sheets and income statements.

14[対面/face to face]：Final examination

I will give a final examination in class.

Students must complete reading assignments before class. In addition, students are given exercise problems to solve at home, which will prepare them for in-class quizzes. Correct answers to the exercise problems will be distributed later in class and some of the problems are explained in class. Students are expected to spend about four hours on preparatory study and review of each class.

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

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).

80% on quizzes and final examination and 20% on class participation.

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

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, you need to have basic knowledge in arithmetics to comprehend the contents of this class.
Please note that this course is held face to face and in a small classroom which accommodates only twenty plus students.
Therefore, the number of students to be admitted to this class is limitted to twenty plus.
Note, however, that because this class is offered for GBP, GBP students are guaranteed a seat in this class,if they choose to register for it.

None

Please note that the teaching approach may vary according to which threat level we are at: at level 1, this course will be held on campus, though at level 2, it will be held online.