Two Alternatives

-Option 1

• Midsemester exam covers topics weeks 1-6 (TVM, Arbitrage, Bonds, Stocks, Capital Budgeting): 35%
• Group project on cost of capital (report on selected firm covering financingm capital structure, estimate cost of debt, estimate cost of equity (beta calculation), compare to competitor): 25%
• Final exam covers topics weeks 7-13 (risk and return, CAPM, capital structure, dividend policy): 40%

-Option 2

• Group project on cost of capital (report on selected firm covering financingm capital structure, estimate cost of debt, estimate cost of equity (beta calculation), compare to competitor): 25%
• Final exam covers topics weeks 1-13: 75%

 

Group Project (25%)

• Groups up to 3 students (compulsory). Groups with 4 or more students will not be allowed.
• Each group will choose a firm listed in one of the main world stock exchanges included in one top stock index (EU, USA, Brazil, Japan, …). NO FINANCIAL FIRMS (eg, banks).
• The report must be written in English.
• THEME: cost of capital (details to be provided)

 

Mid-semester exam (35%)

• Saturday November 7
• Multiple-choice English
• Closed book (key equations will be provided)

 

Final exam (40%)

• Closed book (key equations will be provided)
• Students must get a minimum grade of 8.0 out of 20 on the exams.