Prerequisite: Students must have taken Analytical Methods or Introduction to Finance Concepts. If students have a similar introduction to basic present value calculations at HLS or elsewhere, they may contact the faculty to waive the requisite.
Exam Type: Any Day Take-Home
Finance is important to understand the world, your clients, and the law -- and not just corporate law and clients. This course will teach financial concepts mostly through hands-on financial exercises, small and big; the only lectures will be pre-recorded videos you can watch at home. There will be few legal materials, and only as illustrations of financial concepts. As compared to a typical business school course, this course will put more emphasis on concepts and less on details of project valuation. There will be plenty of numerical exercises but little math. The textbook for the course is a standard corporate finance textbook at top business schools.
The course is divided into four sections of three weeks each: (1) Replicating cash flows and the law of one price; (2) Diversification and market efficiency; (3) Capital structure; (4) Options, auctions, and market design. Each section concludes with a one-hour take-home exam to be taken anytime between midnight on the day of the last class and 4:30pm on the Friday of that week; there will be no other exam or paper for this course.
The 3-Week Section will be pass/fail, while the remaining three sections will be graded in standard fashion.
Note: This section will take place from September 4 through November 27. Additionally, the first two out of every three Monday morning lectures will be replaced by a video lecture that students can and must watch at home. The first video lecture must be viewed before the first class on Tuesday, September 4.