Master of Science Program in Finance (International Program) Thammasat Business School Course Syllabus Semester / Academic Year: Pre-course 2017 MF 501 Mathematics for Finance I (MIF#19) Instructor: Pantisa Pavabutr Email: [email protected]Office hours: by appointment Materials Covered: Objectives: This course aims to provide financial mathematical background for students entering the graduate program in finance. The course content includes the concept of time value of money and its applications especially for use in the area of financial asset valuation and capital budgeting; the rudiments of probability theory and statistics relevant to the theory of investment and introductory linear algebra involving matrix operation such as determinant and inverse of matrix. Introduction to optimization with applications in portfolio choice, economics of decision making, and econometrics. Main text: Pantisa Pavabutr, Mathematics for Financial Applications, 2017. Supplemental reading list: Andrilli, and Hecker, Elementary linear algebra, Harcourt. 1999 Defusco, McLeavey, Pinto, and Runkle, Quantitative investment analysis, 2004, Second edition Maths tool box Applications Time value of money Investment and savings problems, capital budgeting, loans, and cost of capital Probability theory and statistics Capital budgeting under uncertainty, valuation risk, distributions of asset returns Matrix algebra Portfolio investment performance and risk Optimization Optimal portfolio selection, Economics of decision making, econometrics
Transcript
Master of Science Program in Finance (International Program)
2 Tue. Mar 14 Basic of Supply and Demand (continued.)
Elasticities of supply and demand
Short-run and long-run elasticities
Effects of Government Interventions
Applications
2.4—2.7
Assignment 1
3
Tue. Mar 21
Consumer Behavior
Consumer Preferences
Budget Constraints
Consumer’s choices
Individual demand
Individual and Market Demand
Income and Substitution Effects
Market Demand
Chapter 3 & 4
4 Tue. Mar 28
Optimization with Constraint : Utility maximization
problem
Chapter 3
appendix
Assignment 2
5
Tue. Apr 4 Production
Firms Decision
Production Technology
Production with one variable input
Production with two variable inputs
Cost of Production
Measuring Cost, Short-run, long-run
Long-run and short-run cost curves
Optimization with constraint: Cost Minimization
problem
Chapter 6 & 7
6 Tue. Apr 18
Profit Maximization and Competitive Supply
Perfectly Competitive Markets
Profit Maximization decision
Choosing outputs in the short run
Short-run Market Supply Curve
Choosing output in the long run
Optimization with constraint: Profit Maximization
Chapter 8
Assignment 3
7 Mon. Apr 24
***
The Analysis of Competitive Markets
Evaluating gains and losses from government
policies—consumer surplus and producer surplus
Efficiency of a Competitive market
Minimum Wages
Chapter 9
8 Tue. Apr 25 Imperfect Competition: Market Power
Price and Output Setting Under Monopoly
Price discrimination
Chapter 10
Final Exam: Tuesday May 9, 2017 06:00 p.m. – 09:00 p.m. Room 205
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Master of Science Program in Finance (International Program)
Thammasat Business School
Course Syllabus
Semester / Academic Year: Pre-course / 2017
MF505 Fundamental Accounting and Finance (MIF#19)
I. General Information Course Title: MF505 Fundamental Accounting and Finance Course description: This course explores foundations of accounting and finance. These include
the function of accounting in identifying, recording and classifying financial transaction and preparation of financial statements. This course also includes basic finance such as financial ratio analyses and studying the functions of finance.
Course Credit: 1.5 credits. Prerequisite: None. Instructor #1: Assistant Professor Dr. Orapan Yolrabil Contact information: [email protected]
Office of Associate Deans 0-2613-2201
Instructor #2: Assistant Professor Dr. Chaiyuth Padungsaksawasdi Contact information: [email protected]
Room TBS#556 TBS Building 0-2613-2283
Course Coordinator: Assistant Professor Dr. Orapan Yolrabil Facebook Group: http://www.facebook.com/groups/MF505.MIF.P.2017/
Please join class FB group for better communication between instructors and students.
Weekday: Class Dates: Mondays and Wednesday Class Time: 06:00 p.m. - 09:00 p.m. Class Venue: TBS Building Weekend: Class Dates: Saturdays and Sundays Class Time: 01:00 p.m. - 04:00 p.m. Class Venue: TBS Building
Please include the following title in the subject area of your email sending to us “MF505-MIF-P-2017”
[course number-program-semester-academic year]. For example, if you would like to ask questions related to Financial Statements,
you can send email with the title “MF505-MIF-P-2017: Questions about Financial Statements”.
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II. Course objectives and relevance Key learning objectives: The purposes of this course are as follows:
2.1. To discuss the role of accounting and financial statements as a window through which to see how economic events affect business.
2.2. To introduce the accounting conceptual framework as well as accounting procedures. 2.3. To discuss the tools and techniques in performing financial statement analysis. 2.4. To familiarize students with the basic concepts of finance.
Development and relevance: Accounting is a business language. Thus, understanding accounting information is a key in understanding business. Moreover, the accounting information is an essential input for financial analysis. The first part of this pre-course is, therefore, intended to acquaint students to accounting and financial information in financial statements. Finally, since some students have very limited prior exposure to finance, the second part of the pre-course serves students as a basic foundation in finance for their future rigorous finance coursework. III. Method of Delivery This class employs the following approaches to learning:
3.1. Class lecture 3.2. Class discussion 3.3. Practices
IV. Knowledge domain
Knowledge domains Corresponding topics or class activities
Evaluation/ Percentage of total assessment (%)
4.1. Ethical and professional standards
Lecture and class discussion
All aspects of knowledge domains will be tested in the quizzes (20%) and a final exam (80%). Moreover, the additional assignments on the related topics will be given in class.
4.2. Body of knowledge
Lecture, class discussion, and practices
4.3. Analytic thinking Lecture, class discussion, and practices
4.4. Interpersonal skills Class discussion made in group
4.5. Quantitative and computer skills
Practices
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V. Course schedule and assessment
Session Topic
Part I: Accounting (Assistant Professor Dr. Orapan Yolrabil) Sessions 1-4: (1) Saturday, March 11, 2017, Time 01:00 p.m. - 04:00 p.m. Room 205 (2) Sunday, March 12, 2017, Time 01:00 p.m. - 04:00 p.m. Room 207 (3) Saturday, March 25, 2017, Time 01:00 p.m. - 04:00 p.m. Room 307 (4) Sunday, March 26, 2017, Time 01:00 p.m. - 04:00 p.m. Room 207
Course overview Accounting and business decisions; Functions of accounting; Users; Accounting information; Accounting system; Business activities; Business transactions
Annual Reports and Financial Statements Accounting framework: Policies and Principles applied; Annual reports; Financial statements: Statement of financial position, Statement of income, Statement of changes in owners’ equity, Statement of cash flows; Financial statement articulation; Financial statement presentation and note disclosures
Statement of Cash Flows Classifications; Statement structure; Cash flows from operating activities, investing activities, and financing activities; Direct vs. Indirect method; Statement of cash flows disclosures; Noncash investing and financing activities; Supplemental cash flows information; Interpretation of cash flows information
Part II: Finance (Assistant Professor Dr. Chaiyuth Padungsaksawasdi) Sessions 5-8: (5) Monday, April 3, 2017, Time 06:00 p.m. - 09:00 p.m. Room 208 (6) Monday, April 10, 2017, Time 06:00 p.m. - 09:00 p.m. Room 208
(7) Saturday, April 22, 2017, Time 01:00 p.m. - 04:00 p.m. Room 205
(8) Wednesday, April 26, 2017, Time 06:00 p.m. - 09:00 p.m. Room 208
Financial statement analysis Users; Benchmarks; Ratio analysis: Liquidity ratios, Activity or asset utilization or asset management ratios, Leverage or debt management ratios, Profitability ratios, Other ratios, The du Pont and Extended Du Pont models; Common-size analysis; Trend analysis; Limitations of financial statement analysis
Overview of business finance Definition of business finance; Introductory concepts of finance: Opportunity cost, Risk-return trade-off; Financial managers’ responsibilities: Financing, Investing; Finance in the organizational structure of the firm; Goals of financial management; Wealth maximization and profit maximization; Agency relationship; Career opportunities in finance: Financial management; Investments; Financial institution management; Financial environments
Assessment:
Assignments and Quizzes (10% each for Accounting and Finance) 20% Final Exam (40% each for Accounting and Finance) 80%
Total 100.00%
(Note that weighting assigned might be changed as instructors see fit) Please note that the final exam date is scheduled on Saturday, May 13, 2017 during 09:00 a.m. - 12:00 noon at Room TBS#208.
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VI. Supplementary class materials Kimmel, Weygandt, and Kieso (2013). Financial Accounting: Tools for Business Decision
Making 7th Edition (International Student Version). John Wiley & Sons, Inc. Koh, Ang, Brigham, and Ehrhardt (2014). Financial Management Theory and Practices (Asian
Edition). South-Western. Williams, Haka, Bettner, Carcello, Lam and Lau (2015). Financial Accounting 2nd (Asia Global)
Edition. McGraw-Hill. VII. Course evaluation and development process
7.1. Student evaluation of course There will be two evaluations per course: Pre-mid-term evaluation (session 3) and post-mid- term evaluation (session before final class).
7.2. Peer review system 7.2.1. Instructor receives feedback of course syllabus from peer group report 7.2.2. Instructor receives feedback of teaching from peer group report
7.3. Class improvement 7.3.1. Faculty receives feedback from student evaluations: One after session 3 and one
conducted on session before last. 7.3.2. Annual faculty academic meeting
7.4. Evaluation of learning outcomes 7.4.1. Faculty end of semester evaluation of students 7.4.2. Assessment of student performance in exams
7.5. Course development 7.5.1. Annual faculty academic meeting 7.5.2. Accommodate case study from industry practice and current research in curriculum.
