UEH Standard programs in English (20% English)

(EN) Financial Economics

Tiếng Anh

ECO501239

3

Groundbreaking advances in financial theory and practice over the past decades have profoundly transformed the financial world. These changes have been further accelerated by the deep globalization of financial markets and the rapid development of financial technology in recent years. The Financial Economics course provides a fundamental knowledge base in modern financial analysis and its applications to business challenges, including capital budgeting, project evaluation, corporate investment and financing decisions, and investment management.

The Financial Economics course equips students with a solid foundation in financial markets, financial institutions, and core financial concepts. The course begins with an overview of financial economics, clarifying the role of financial markets and institutions within the economic system. It then delves into cash flow valuation, covering income, revenue, profit, and the time value of money. Students will explore discounted cash flow (DCF) techniques and income-based valuation methods. The course also examines the relationship between risk and return, theories of uncertainty, and the impact of risk on economic decision-making.

Building on these foundations, the course continues with portfolio theory, the Capital Asset Pricing Model (CAPM), and its extensions, including multifactor models and Arbitrage Pricing Theory (APT). Students will have the opportunity to gain in-depth knowledge of financial reporting through the study of balance sheets, income statements, and cash flow statements, as well as international financial reporting standards (IFRS). The course concludes with corporate financial structure, analyzing internal and external financing sources, including equity and debt financing. Through these topics, students develop analytical thinking and the ability to evaluate financial decisions in an ever-evolving business environment.