Economics Methods for Decision making, IS 230, Fall 2002

Economic Methods for Decision Making
Yale Braunstein
IS 230 / Fall 2002

Quick links:

General course information

Formal SIMS course description

Course Outline (this page)

COURSE OUTLINE

Important information: Now that the course is over, ALL lecture powerpoints and problem sets have been moved to the protected directory, which is here. . The links to them on this page no longer work. SIMS students can log in using their SIMS network userid/password. Other students MUST use the userid and password given out in class or get it from me directly. All solutions to the spreadsheet problems have been permantly removed. (8/2004).
This page last updated 11/19/2002.

Section numbering corrected.

Required Textbook: Eugene F. Brigham & Joel F. Houston, Fundamentals of Financial Management, Ninth Edition, Harcourt, 2001. ISBN: 0-03-028931-9

Textbook web site

Spreadsheet models online (also available on Student CD-ROM)

Optional software & text: Sam L. Savage, INSIGHT.XLA: Business Analysis Software for Microsoft Excel

Sam Savage web site
Insight.xla web site at AnalyCorp

Information on spreadsheet layout and documentation (links to other sites)
NOTE: If you have difficulty in downloading any of these files, remember:

Windows users should right-click on the hyperlink; some non-HTML files (e.g. Excel) work with IE 5 but not always with Netscape.
Netscape users may need to use a "zipped" archive file. Send me an e-mail if you need a file "zipped."
Mac users should click and hold.

[Links on these pages to commercial sites do not represent endorsement by the Univerity of California or its affiliates.]

[See important note about dead links above.]

A. Accounting Concepts & Financial Statements; Alternate Forms of Organization; Ratios

Brigham, Ch. 1-3
Spreadsheet problems (with links) 2-21, 3-17
Lectures & examples
Chapter 1, Chapter 2, Chapter 3 (Powerpoint files)
Introduction to financial statements or "one year in the life of a small firm" (Excel spreadsheet)

B. Introduction to Uncertainty over Time, Forecasting

Brigham, Ch. 4 (Chapter 4 ppt. file)
Spreadsheet problem 4-12
Insight, Ch. 1-3, 5; Exercise 3.4 (page 64; use proforma.xls below)
Chapter 2: The Building Blocks of Uncertainty: Random Variables (PDF file)
Sample files: profit.xls, proforma.xls
Sample of SIM.XLA Monte Carlo software available from Savage. (Includes the files above.)

C. Financial Markets & Institutions

Brigham, Ch. 5 (Combined Chapters 5 & 6 ppt. file)
Optional spreadsheet problem 5-15

D. Risk Analysis

Brigham, Ch. 6
Spreadsheet problem 6-17
Insight, Exercise 2.8 "Investments" and "Reviewing Portfolios of Related Investments," pp. 84-88.
Sample file: funds.xls

E. Time Value of Money; Evaluation of Bonds & Stocks

Brigham, Ch. 7-9 (Chapter 7 , Chapter 8, Chapter 9 ppt. files)
Spreadsheet problems 7-49 (in class), 8-19, 9-26

F. Capital Budgeting & Project Evaluation

Brigham, Ch. 10-12 (Chapter 10, Chapter 11, Chapter 12 ppt. files)
Spreadsheet problems 10-20, 11-18, 12-11

G. Real Options & Uncertainty

Brigham, Chapter 13
Spreadsheet problem 13-13
Insight, Ch. 6

H. Strategic Long-term Finance

Brigham, Ch. 14-15 (Chapter 14, Chapter 15 ppt. files)
Spreadsheet problems 14-16, 15-10

I. Management of Short-term Accounts

Brigham, Ch. 16-17 (Chapter 16, Chapter 17 ppt. files)
Spreadsheet problems 16-14, 17-18

J. Optimization

Insight, Ch. 7-8 (Linear programming ppt.)
Insight, optimization exercises 7.1 & 7.2

Sample files: BOAT.XLS & BOATS.XLS