Module 1: Financial Management II (Financing Decisions) – 50%

Risk analysis and alternative capital investment options

• Break-even point
• Sensitivity analysis
• Scenario analysis
• Simulations
• Decision trees
• Inflation and investment decisions
• Alternative options
• Examples and problem solving

Market efficiency

• Theory of market efficiency
• Examples

Processes and sources of financing

• Business plan
• Sources of short-term financing
• Sources of long-term financing
• Short-term capitalization processes
• Long-term financing processes
• Issue of common and preferred shares
• Issue of conventional and convertible bonds
• Valuation of debt instruments and shares
• Warrants
• Examples and problem solving

Dividend policy

• Theory of dividend policy
• Share dividends, stock split
• Share repurchase
• Examples and problem solving

Risk and return

• Measurement of return
• Measurement of market risk
• Portfolio risk and return
• Capital asset valuation model
• Examples and problem solving

The lease decision

• Examples and problem solving

Module 2: Financial Management ΙΙΙ (Analysis and Planning) – 50%

Leverage (operational, financing and total)

• Examples and problem solving

Capital structuring

• Theory and practice
• Empirical studies
• Examples and problem solving

Business evolution and adaptation

• Mergers and acquisitions
• Corporate restructuring (spin off, split off) – reorganization (privatization) – business groups
• Examples and problem solving

Working capital

• Accounts receivable financing and reserve management
• Short-term planning and budgeting, cash planning
• Cash management and short-term financing
  • Baumol model
  • Miller–Orr model
• Examples and problem solving

Corporate governance

• Theory and practice

Corporate valuation

• Introduction to the measurement of business value
• Basic models of business valuation
• Examples and problem solving

This course consists of two modules:

• Financial Management II (Financing Decisions) – 50%
• Financial Management III (Analysis and Planning) – 50%

It builds on Financial Management I (Investment Decisions)

Module 1: Financial Management II (Financing Decisions) – 50%

The purpose of this module is to analyse and evaluate capital investments under conditions of uncertainty and to identify potential investment alternatives. The theory of market efficiency is also discussed. The course will present the ways in which companies can raise capital, the different methods and their consequences. Theories of dividend policy are examined, as well as the practices adopted by companies to distribute their profits (dividends) and how these are related to the repurchase of shares. Finally, the relationship between risk and efficiency and leasing decisions are outlined.

Module 2: Financial Management ΙΙΙ (Analysis and Planning) – 50%

The purpose of this module is to analyse corporate capital structuring and the theories related to this. The processes and methods involved in mergers and acquisitions as a means of restructuring companies are presented. Working capital and the short-term obligations of companies and ways in which these are managed are outlined.

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

• analyse and evaluate investment under conditions of uncertainty, using the methods and valuation criteria they have learned;
• be familiar with alternative ways of raising capital and to calculate the potential consequences on share price;
• know what dividend policy is, the theories that explain it and the ways in which companies distribute their profits;
• calculate the impact of dividend policy on company value;
• analyse data in order to calculate risk and return;
• analyse data in order to decide whether they will purchase or lease a fixed asset;
• be familiar with capital structuring theories and to calculate the optimal level of borrowing in specific situations;
• be aware of the corporate restructuring options available to companies (mergers and acquisitions);
• analyse data in order to calculate the impact of mergers and acquisitions on company value;
• analyse data in order to calculate optimal level of working capital; and
• develop critical thinking and decision-making skills in this field.