Introduction to financial management

• Introduction, basic concepts and tools
• Business environment
• Basic goals of companies and non-profit organizations
• Representation theory and cost of representation
• Financial markets (money and capital markets)
• Accounting profits and cash flows.

Financial statement analysis

• Financial statements
• Indicator analysis

Break-even point and leverage

• Break-even analysis
• Leverage (operational, financial, total)
• Capital structuring
• Examples and problem solving

Time value of money

• Current and future values
• Examples and problem solving

Valuation of shares and bonds

• Shares
• Bonds
• Examples and problem solving

Capital investment budget

• Concepts
• Investment criteria (acquisition period, net present value, internal rate of return, modified internal rate of return, efficiency index)
• Risk response
• Special situations (replacement of assets, limited capital)
• Examples and problem solving

Capital cost

• Sources of finance and relevant cost
• Exercises

On successful completion of the course students will be able to:

• understand the basic concepts and functions of markets, the financial system and businesses;
• use data in order to value securities;
• analyse and evaluate investments under conditions of uncertainty using the methods and valuation criteria they have learned;
• calculate capital cost;
• have knowledge of the basic information in financial statements and the key indicators; and
• make decisions in the field of financial management.