FIN 408 - Business Finance (Finance)

Term: Summer A:  June 6th – July 2nd 2016 / Summer B: July 4th – July 30th 2016 
(Application before may 20th 2016)
Professor: According to the latest Update
Total Contact Hours: 45 hours

Course Description

To develop an understanding of the role of financial management in appraising investment projects, quantifying the risk/return relationship, evaluating and selecting the appropriate source of finance to fund investments and managing the working capital position.

Grading 

  • Participation : 20 %
  • Midterm : 40 %
  • Final Exam : 40%
  • Total : 100 %

Business finance - ECTS

Exams

One midterm exam and one final are schedule for the semester. The final exam is cumulative. Exams could be a combination of multiple-choices, true-false, matching, ordering, fill-in-the-blank, and short answer.

Course Schedule

The course has 22 class sessions in total. All sessions are 2 hours in length.

  • Class 1 • Class 2: Introduction to corporate finance: The corporation, the stock market, the financial manager
  • Class 3  • Class 4:  Financial statements analysis and interpretation: Profitability, efficiency, liquidity, gearing investment ratios, Overtrading
  • Class 5  •Class 6: Time value of money : Interest rates, valuing bonds
  • Class 7 • to • Class 10:  Projects and firms / capital budgeting fundamentals : Method of investment appraisal / Payback, NPV, IRRR - Investment decision rules - Valuing stocks

Mid Term Exam 

  • Class 11 to • Class 16 : Risk and return / Capital market and the pricing of risk: Portfolio theory and capital asset pricing model - Cost of equity, debt; weighted average cost of capital.
  • Class 17 to • Class 20: Working capital management: Inventory management; controlling trade debtors, trade creditors. Cash management and the operating cash cycle 
  • Class 20 to • Class 22: Individual assignment: supply chain IT Initiative: Investment appraisal - Project financials - Project board individual presentation

Final Exam

Study cases based on real companies’ experiences will be proposed all along classes.