1. Explainthedifferencebetweeninternalandexternalfundsusedbyfirmstomeettheirfunding
needs.WhydoU.S.firmsasawholegetthemajorityoftheirfundingfrominternalfunds?
Internal funds are funds that are generated internally within a firm. These are
often retained e

MGMT S-2000
Principles of Finance
Harvard University Summer School
Summer, 2015
Course Web Site: http:/isites.harvard.edu/course/sum-32611/2015/summer
Lectures will be available for viewing every Monday, Wednesday and Friday, in accordance with the
schedu

Stock Markets (cont.)
Arbitrage
Efficient Markets Hypothesis (EMH)
Three Forms
Theoretical Foundations
Stock Price as Expected Value
P/E Ratio
Behavioral Finance
Diversification
Capital Asset Pricing Model (CAPM)
Fundamental Analysis vs. Technical Ana

Stock Markets (cont.)
Arbitrage
Efficient Markets Hypothesis (EMH)
Three Forms
Theoretical Foundations
Stock Price as Expected Value
P/E Ratio
Behavioral Finance
Diversification
Capital Asset Pricing Model (CAPM)
Fundamental Analysis vs. Technical Ana

Present Discounted Value and Net Present
Value (Review)
The Bond Market
Who Issues Bonds?
Credit Risk vs. Interest Rate Risk
Bond Pricing
Components of a bond
Role of the interest rate
Pricing a bond with finite maturity
Special kinds of bonds
Calcul

1
Harvard University Extension School
Fall Semester 2015
EXPO E-34: Business Rhetoric
Course#14906;Section 6; Wednesdays 5:30-7:30 pm
Web Conference Only Section
Instructor: Dr. G. B. Hill
gbhill@fas.harvard.edu
Syllabus subject to change
Course Descripti

Present Discounted Value and Net Present
Value (Review)
The Bond Market
Who Issues Bonds?
Credit Risk vs. Interest Rate Risk
Bond Pricing
Components of a bond
Role of the interest rate
Pricing a bond with finite maturity
Special kinds of bonds
Calcul

The Stock Market
Stocks vs. Bonds
Long-term Returns vs. Short-term Returns
Stock Market Players
Types of Markets
The Major Exchanges
The Rise of the ECN
The Players: Who Holds US Equities
The Globalization of Stock Markets
Trading Mechanics
Bid and Ask

The Stock Market (cont.)
The Primary Market
Finance Jargon: Shares Outstanding, Float, etc.
Market Cap Categories
The IPO Process
The Secondary Market
Market Types
Types of Exchanges
The Globalization of Markets
New Trading Strategies
Finance Jargon:

Open Market Operations (Review)
Money Supply and Money Demand (Review)
Interest Rates
Economic Consequences of Fed Actions
Fed Responses to the Financial Crisis and Great
Recession: Quantitative Easing I, II and III
Monetary Policy
Expansionary Monetary

Time Value of Money
Future Value (FV) and Present Value (PV)
Examples
Net Present Value (NPV)
Examples
Internal Rate of Return (IRR)
Future Value of an Amount
Invested Today
Put $100 in a savings account today
Get an interest rate of 10%, credited at

Introduction to Derivatives
Options Mechanics
Call Options
Put Options
Some Options Jargon
Intrinsic and Time Value of an Option
Hockey Stick Diagrams
A Simple Option Pricing Model (OPM)
Effect of Volatility on Option Value
Leverage
Derivatives
A deri

Futures Contracts
How Futures Markets Evolved
Options vs. Futures
Futures Market Mechanics
Leverage
Stock Index Futures
Trillion Dollar Bet
Options vs. Futures
Options
Futures
Options vs. Futures
Options
Exchange of a right
Futures
Options vs. Futures
O

Harvard University
Extension School
MGMT E-5000 STRATEGIC MANAGEMENT
Fall 2015
Sharon A. Mertz, Ph.D., Instructor
Phone: 617 -834-7787
E-mail: Mertz@fas.harvard.edu
Class: Tuesday, 5:30 PM 7:30 PM web conference
U.S. Eastern Time
Office Hours: By appointm