GBPGBP (Global Business Program)

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

(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.

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 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.

I will give you written feedback on the exercises and oral feedback in class.

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 annuity computation as well as the perpetuity computation.

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

I will explain how to compute growing perpetuities, and how to solve loan payments and the internal rate of return.

5[対面/face to face]：Interest rates

I will explain interest rate quotes and discount rates.

6[対面/face to face]：Interest rates

I will discuss discount rates and loans.

7[対面/face to face]：Interest rates

I will discuss discount rates and loans as well as determinants of interest rates.

8[対面/face to face]：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]：Basic terms for stock investments

I will explain basic terms of stocks and stock investments.

11[対面/face to face]：Stock valuation

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

12[対面/face to face]：Financial statements.

I will discuss balance sheets and income statements.

13[対面/face to face]：Financial statement analysis

I will discuss a number of financial ratios.

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 the in-class quizzes. Incidentally, the correct answers to the exercise problems will be distributed later in class. Preparatory study and review time for this class are 4 hours all together.

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. Incidentally, the correct answers as well as students' answers will be sent to students electronically right after quizzes or final exam are given. In addition, the errors that many students make in these quizzes will be discussed in class.

I will cover less topics this year than last year to give 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, 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 this class.

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.