Download Introduction to Financial Management FIN 102

Financial Institutions and
Markets
FIN 304
Dr. Andrew L. H. Parkes
“A practical and hands on course on the valuation and
financial management of corporations”
卜安吉
Syllabus and Our Course

The syllabus provides an
outline of what we will do
this semester:
– Chapter 3 - 4, 8 – 12, 15,
19 - 24 of the textbook.

This week I will talk very
briefly about Chapter 1
and then 3 & 4 about
Market Basics.
Financial Institutions and Markets
The required textbook
2
Lectures and Practice Problems

Lectures: 2 to 4 hours per week I will
introduce the new material to you.

Practice Problems: We will do
assignments from my slides and from
the textbook.

You will have to prepare assignments for
every class; there is NO class without
homework (sometimes just reading).

You will do all of your own work during
the course. Copied assignments will be
given 0 marks.

Notice you must have access to WSJ, FT
(also investopedia.com – Forbes, etc.).
Financial Institutions and Markets
Keep up to date with
Finance related issues
3
Grading
Mid-term test - 20%
 Final Exam
- 60%
 Homework
- 10%
 Quizzes
- 10%


Total
- 100%
Financial Institutions and Markets
4
Financial Institutions and Markets
(Ch. 1)
Financial Management
IS required for this
course!
 Look at the Definitions:
Markets, Security,
Assets, Bond, Interest
rate, Stock, Foreign
Exchange Market (rate)
…

Financial Institutions and Markets
5
SEE MY WEBSITE: andrewparkes.com
1.
2.
3.
4.
Often and regularly
Kept ahead of class
Links and PPT
Other information

[email protected]
Like this =>
Total Public Debt Outstanding
$ 9,139,880,193,861.94 - 11/29/2007
$ 10,647,917,555,364.39 - 11/26/2008
Financial Institutions and Markets
6
Yuan trades at what rate today?

Why do I say the yuan is pegged?

Three Goals of any MACROECONOMY
– Full Employment – Unemployment Rate
– Economic Growth – REAL GDP
– Price Stability - CPI
– KNOW what real GDP and CPI mean
– Quiz next class!!! – 5 pts
Financial Institutions and Markets
7
U. S. Real GDP 2000 - 2008
Recession on the way!
Financial Institutions and Markets
8
Prices of Gross Domestic Purchases 2000-2008
Financial Institutions and Markets
9
KNOW WHO THE FED IS!?!

See my website if you need more info …
– PPT from week 2 or 3 Intro to Finance
– U.S. Macroeconomic Sites

People’s Bank of China
– Website is available from andrewparkes.com
– Know who they are and what they do!
– These are the most important financial
institutions in this class!
Financial Institutions and Markets
10
Problem Set 1: CPI and GDP deflator

Calculation of Price Indices
– Paasche – based on current year quantities
– Laspeyres – based on past year quantities
 Easy
for you, eh?
Financial Institutions and Markets
11