by Dr. Ridha ESGHAIER
Finance @TBS
>> PRINCIPLES OF FINANCE
PRINCIPLES OF FINANCE
Course
Objective
This course forms a basis for your financial education, and remains a fundamental ingredient for further understanding of the field. It provides you with a very accurate insight into the nature of finance and finance-related issues.
This course is designed to equip students with the tools they need to make their own financial decisions with greater skills and confidence.
This course provides an introduction to the theory, the methods, and the concerns of finance. The concepts developed in this course form the foundation for all elective finance courses. The objective and purpose of this course are summarized by its very title. We shall explore the basic principles and concepts of what we understand to be finance. We shall explore their meaning, rationale, application, and functional purpose. The main topics to be covered include: the time value of money, capital budgeting decisions; analysis of financial statements; valuation of bonds and stocks; determinants of the yield to maturity and bonds convexity & duration.
COURSE LEARNING OUTCOMES
At the end of this course, students should be able to:
CLO1. Analyze the time value of money and apply the principles of loan
amortization
CLO2. Estimate cash flows and apply the basic tools of capital budgeting
CLO3. Apply the fundamentals of financial statements analysis
CLO4. Describe and apply basic equity valuation models
CLO5. Evaluate fixed income securities (Bonds valuation)
CLO6. Describe the determinants of the yield to maturity
CLO7. Estimate bond’s convexity and duration and Analyze the bond’s
sensitivity