INTRODUCTION TO FINANCIAL ECONOMICS

본 과목에서 다루는 분야를 개괄적으로 살펴본다면 화폐의 시간가치와 기업 및 기관의 주식과 채권의 발행, 기업의 미래 자본예측과 각종 금융상품의 가격결정 방법, 그리고 기업 및 기관의 제반 경영 활동과 관련되어서 재무적 변화에 영향을 미치는 일반적인 행위가 기업에 미치는 영향에 관한 기본 이론을 학습한다.

The objectives of the course focus on the word “financial” in the course title. The course’s aims are: (a) to familiarize students with basic finance tools and principles needed by all economists, (b) teach students to properly apply such tools and principles to accurately value economic and financial assets and investments, (c) provide students with knowledge of governance and acceptable performance behavior of corporations, and (d) instruct students on the major financial institutions and markets through which corporations and the individual investors inter-act in order to correctly value economic assets and investments in not only the global economy but in such national economies as the Korean & US economies. The course particularly focuses how the private investors and corporations “intermediate” financially in the financial markets in order to satisfy individual investment needs and to satisfy corporation’s need to raise capital. The method of teaching will emphasize homework assignments which contain arrays of applied mathematically oriented problems so that students will become familiar about economic asset and financial markets in a “learn-by-doing” fashion.

I will take roll call for attendance and all Keimyung University rules on attendance apply (including the rule that absences totaling 30% of classes implies an automatic F grade for the course. Attendance is mandatory and will comprise 5% of total point and hence your grade. I will from time to time have un-announced pop quizzes, each worth 100 points. Pop quizzes will be un-announced. If you miss a pop-quiz because you were not in class, you cannot make it up (except for extraordinary reasons) and you will lose the 100 points from your point total. This is an incentive to attend class. You must have basic calculator abilities at all times. Cheating will not be tolerated in any form.

There will be no class room exams. However, there will be a number of written homework assignments or home exam assignments & unscheduled/un-announced pop quizzes. Each will be worth 100 points. All assignments/quizzes will be closely modeled after the power point presentations and lectures. Grades will be based on the number of points of the total point number earned on the homework assignments and quizzes, and on Keimyung University rules guiding class grade “curves.” All homework assignments must be handed in on time; late submissions will be assessed a point penalty. Assignments handed in very late will not be accepted. The FINAL homework assignment or take home exam must be handed in on time and late submittals for this last/final assignment will not be accepted.

Some knowledge of the English language is necessary to understand the instructor. Please bring a calculator to class.

The course provides the basics of finance principles to aspiring economists. The course should provide information on the basics of how financial markets and financial institutions work. Students will learn basic accounting skills that help them in their own purchasing and investment decisions (buying a home or car). Students will understand the workings of interest rates and rates of return when making purchasing decisions. The course should help students to accurately value economic assets, financial instruments, as well as provide basics enabling students to evaluate competing investment options. Time value of money principles should help the students in all facets of life’s decision making. Generally the course should help students in various aspects of retirement planning.