Syllabus - Vesalius College

VESALIUS COLLEGE vzw/asbl Fall 2013 BUS321G TITLE OF COURSE: Financial Markets and Investments

Contact Details for Professor: Véronique Lederman Tel: GSM: E-mail:

+32 2 265 52 55 +32 499 27 03 77

Office hours and location: Brussels Course Prerequisites (if any): BUS141P (Accounting) and Corporate Finance

Learning Objectives After this course, you should be able to: to understand the Financial markets functionning and the financial investment decision process based on the theoretical and practical approach. Course Description After a short introduction we start our financial journey by investigating all financial markets, based on courses, students presentations on financial issues and exercises. A FOREX game will be organised. The last part of the courses will be dedicated to Capital Budgeting or investment decison making process. See below the detailed course contents. Course Materials Textbook: Vernimmen: Corporate Finance, Wiley 3rd edition and the website vernimmen.com Case Studies and Additional Readings: a tutorial book will be given to the students at the beginning of the period, with exercises on the different chapters.

Syllabus:

Course Code and Title

Spring 2012

Grading Scale of Vesalius College Vesalius College grading policy, in line with the Flemish Educational norms, is now as stated follows: Grade A AB+ B BC+ C CD+ D F

Scale of 20 17.0-20.0 16.1-16.9 15.3-16.0 14.5-15.2 13.7-14.4 13.1-13.6 12.3-13.0 11.5-12.2 10.7-11.4 10.0-10.6 Below 50

Scale of 100 85-100 81-84 77-80 73-76 69-72 66-68 62-65 58-61 54-57 50-53 0-49

Course Assessment The students will be evaluated on the basis of their performance as follows:     

Activity 11 In-class participation Activity 22 Midterm examination Final examination TOTAL

15% 10% 20% 25% 30% 100%

Further description of assessment activities:

Grading Criteria The following criteria will be applied in assessing your written work:  Evidence of understanding of the concepts, theories and ideas developed in the course.  Ability to make research based on tools presented in class. Additional Course Policies 1 2

Exercised marqued randomly Presentations

Syllabus:


Spring 2012

Here, a professor can add policies on late papers, coming late to class, etc.

Academic Honesty Statement Academic dishonesty is NOT tolerated in this course. Academic honesty is not only an ethical issue but also the foundation of scholarship. Cheating and plagiarism are therefore serious breaches of academic integrity. Following the College policy, cheating and plagiarism cases will be communicated in writing to the Associate Dean for Students and submitted to the Student Conduct Committee for disciplinary action. If you refer to someone else’s work, appropriate references and citations must be provided. Grammar, spelling and punctuation count, so use the tools necessary to correct before handing in assignments.

Course Schedule All courses will start with Market indicators follow up, such as DDJA, CAC 40, DAX, EUR/USD, Interest Rates, Gold... Introduction : Market Panorama Works distribution : Who is doing the Market indicators follow up ? Presentation allocation : One subject per week, such as the Role of the Rating Agencies ; Financial crisis : part 2 ; Lehman Brothers bankruptcy ; NYSE/Euronext merger and adventure ; The Euro: the beginning of the end or the end of the beginning?; Volatility and financial innovation : the real danger ?; The International Financial Institutions : which kind of leadership ?; Behavioural Finance… Each session is starting with Market indicators follow up, questions left on the previous session, Students presentation, the course itself, exercises and corrections, exercises distribution to be done at home. 1. Valuation and Time Value of Money :  Capitalisation, Discounting, Compounding, Multiple Cash Flows.  Exercises in class + correction 2. Bond Markets  Basic concepts  Bond calculation  YTM  Different kinds of bonds, Medium Term Notes included  Volatility and sensitivity  Default Risk and Rating issues  Exercises and corrections

Syllabus:


Spring 2012

3. Stock Markets  Basic concepts  Stock valuation  The Stock market  Selling Securities o Multiples (PE, EBIT)° o IPO o Capital Increase  Portfolio Management, including charts.  Dividend Policy  Merger and Acquisitions  Exercises and corrections 4. Interest Rates and related Markets  Short Term financial Planning (the cycles and the tools)  Short Term Management : Cash and Liquidity : Money Market, selling or buying marketable securities...  Exercises and corrections 5. FOREX markets  Basic concepts and Charts  Cross rates  Exercises  FOREX GAME 6. Derivatives: when the hedgers meet with the speculators.  OTC and forwards  Standardised  Structured products  Exercises and corrections 7. Capital budgeting and Investment Valuation (Higher level)  NPV  IRR  Other Investment Criteria  Exercises and corrections.

Syllabus:


Spring 2012