GBUS 840 - Valuation in Financial Markets

This course focuses on how financial assets and firms are valued in financial markets. While a key objective of the course is to provide valuation skills employed in elective finance courses, the course will also apply valuation models to real financial data and assets. The course is organized into two modules: The first module’s focus is on valuing traded financial assets with fairly complicated structures with an arbitrage-based approach in the options and fixed income areas, while the second module focuses on valuing companies and the implication on their stock prices. In addition to the WACC models introduced in the First Year Financial Management and Policies elective, students will discuss the APV approach and the equity-residual approach to valuing firms. Students will explore how all these approaches compare to each other and the relative merits of each. (Y)

Credits: 1.5