BOSTON_UNIVERSITY · QST FE · COURSE SHEET
QST FE 712See offeringsHas prerequisites
Finance 2
CT Score
1500
#0 of 0 in QST FE
Difficulty
—/10
Workload
—h/wk
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By professor: same course, different game
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(QSTFE711) - The course begins with a brief introduction to some basic financial securities (stocks and bonds) and how to calculate their risks, returns, and correlations. We will then study the capital asset pricing model (CAPM) of asset pricing model, a theory setting out the required returns on financial assets, and its implications for how to invest in financial markets. We will use the CAPM to derive a required return on investment, which we will then use as to calculate a weighted average cost of capital (WACC), which will be the discount rate used to assess the net present value of business investments. The WACC can be used to find the present discounted value of a firm, or of a potential acquisition, as well as to determine the net present value (NPV) of a project under consideration for investment by a firm. The course will finish with a case study valuation of one such project or acquisition, using knowledge on the calculation of free cash flows from FE711 and of the calculation of the discount rate from FE712→QST FE 712→unlocks 6 courses
6 mapped courses list QST FE 712 as a prerequisite. See on the map →
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