Basic Financial Management - Spring 2024

Introduction

Finance deals with the savings and investments of businesses, individuals and authorities; and permeates all parts of society. This introductory cours focuses primarily on the investment side of finance, and introduces financial instruments (shares and bonds), and the so-called real investments (e.g., launch of new products). Part of the course will also be devoted to discussing the role of sustainability in investment decisions. The students will acquire the knowledge and skills to make investment decisions that are relevant for companies, authorities and private individuals.

The course connects theory and practice by analyzing real world examples with Excel. Therefore, the students will also gain valuable experience in analyzing investment projects that will generate a competitive advantage in their future working life.

Course content

• Introduction – Investment decisions and the role of corporate finance.
• Interest rates and the valuation of stocks and bonds.
• Portfolio theory and risk.
• The Capital Asset Pricing Model: the pricing of risk in financial markets and its importance in the assessment of the cost of capital.
• Introduction to a real case-study on investment analysis.