Main textbook for the course : Ross, Westerfield, Jordan
Modigliani-Miller theory of capital structure
Textbook chapter 17
Financial analysts and the Irak crisis
Why the analysts do not agree ? If they did the market would move to the point where they do not... (for oil price for instance).
The Dow Jones index over the past century :
Source : http://www.djindexes.com
1897 - 1950 : only "one accident" : the Great Depression
1950 - 1970 : steady growth (the equivalent of the french "Trente Glorieuses")
1970 - 1979 : "random evolution" : the era of uncertainty, following the oil shocks and the end to the dollar convertibility
1980 - 1999 : steady growth, after the Reaganomics
2000 - 2003 : agitated slowing down : the end to blind faith in the link between liberalism and prosperity ?