ENMG 602 Introduction to Financial Engineering |Online – Fall 2020
Instructor: Bacel Maddah
Syllabus
Class Notes
Week 1 Introduction to Financial Accounting (Chapter 1, Antle)
Videos: Introduction | Economic Concepts | GAAP and Institutional Context | Balance Sheet
Week 2 Introduction to Financial Accounting (Chapter 1, Antle)
Videos: Income Statement | Statement of Cash Flow | Mapping of Econ Concepts & Annual Report
Week 3 Balance Sheet Concepts I (Chapter 2, Antle)
Videos: Overview | Assets | Liabilities | Equities | Construction & Accounting Identity
Week 4 Balance Sheet Concepts II (Chapter 2, Antle)
Videos: T-Accounts | Accounting_IS | Analysis & Ratios
Week 5 Income Statement Concepts (Chapter 3, Antle)
Videos: Intro | Revenues & Expenses | Accrual Accounting | Gain & Losses & Temporary T | Websell Journal & T |Adjustments | Closing & Ratios
Week 6 Statement of Cash Flows (Chapter 4, Antle)
Videos: Intro | Sections | TTC Net Income Vs. Net Cash | Indirect Method | Indirect for Websell |Indirect for Rhody | Ratio & Analysis
Week 7 Accounting Framework, Asset and Company Valuation, and GAAP Limitations (Chapters 5-7, Antle)
Videos: AOL Overview | AOL Analysis | Cash Flow Timing | Cash FLow Uncertainty | DECF Valuation | Valuation & GAAP| Harrodsburg Case | Microsoft Case
Week 9 The Basic Theory of Interest I (Chapter 2, Luenberger)
Videos: Interest_&_Compounding | NPV_IRR_&_Economic_Feasibility
Week 10 The Basic Theory of Interest II (Chapter 2, Luenberger)
Videos: Applications | Examples
Excel Example on Estimating the IRR
Week 11 Fixed-Income Securities (Chapter 3, Luenberger)
Videos: Fixed-Income | Bond | Duration | Immunization
Week 12 The Term Structure of Interest Rate (Chapter 4, Luenberger)
Videos: Yield Curve | Spot Rates | Forward Rates | Explanation_&_Short_Rates | Duration & Immunization
Excel Example on Building the Term Structure under Expectation Theory
Week 13 Applied Interest Rate Analysis (Chapter 5, Luenberger)
Videos: Optimization & Budgeting | More Budgeting | Cash Matching & FCF Valuation | Dynamic Cash Flow Process
Excel Examples on Capital Budgeting, Cash Matching and FCF Valuation
Paper Project
Next milestone: Delivery of proposal by Thu, Nov 12.
Homework Assignments
HW 1 Questions 1.4, 1.5, 1.6, 1.7, 1.9, P1-3(a), C1-2 (Antle problems book). Due Wed Sep 23, 2020.
HW 2 Questions 2.18, 2.19, E2-7, C2-2 (Antle problems book). Due Mon Oct 5, 2020.
HW 3 Questions 3.5, 3.7, 3.22, E3-3, E3-4, P3-2 (Antle problems book) and supplement problems. Due Thu Oct 15, 2020.
HW 4 Questions 4.11, 4.15, 4.20, 4.24, P4-2 (Antle problems book) and supplement problems. Due Tue Oct 27, 2020.
HW 5 Question 5.22, C5-1(a,b,c,d,h,l,n) Questions 6.17, 6.19, E6-8, C6-6 (c,m,n), Questions 7.9, 7.15, P7-2, and supplement problems. Due Thu Oct 29, 2020 (optional).
HW 6 Exercises 2.2, 2.6, 2.8, 2.12, 2.14 (Luenberger book). Due Thu Nov 19, 2020.
HW 7 Exercises 3.4, 3.5, 3.11, 3.14, 3.16 (Luenberger book). Due Thu Nov 26, 2020.
HW 8 Exercises 4.2, 4.6, 4.9, 4.15, 5.1, 5.2, 5.7, 5.12 (Luenberger book). Due Mon Dec 7, 2020 (optional).
Links