Foundations of financial management
[FSA2240]
[30h + 15h] 4 credits
This course is taught in the 2d semester.
Teacher(s): Philippe Grégoire
Language: French
Level: Second
Aims
Give to our student a fair understanding of the methods and concepts that support the decion processes in the field of finance. A specific attention is dedicated to the capital budgeting decisions and the financing decisions.
Main themes
Financial statements analysis. Solvability, liquidity and profitability.
Financing decisions. Issues of common shares or corporate bonds.
Capital budgeting decisions
Content and teaching methods
Financial forecastings.
Profitability analysis, Return on Equity and Return on Investment.
Risk-return trade-off associated to the debt. Financial leverage.
Risk-return trade-off associated to the fixed assets and fixed cost. Operating leverage.
Financing decisions : issues of common stocks vs issue of corporate debt.
Weighted average cost of capital (WACC)
Selection criteria in capital budgeting : payback, internal rate of return,net present value.
Introduction of risk in capital budgeting.
Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)