Introduction to financial and accounting management

Teacher(s)

Sarens Gerrit ; Nsabimana André (compensates Sarens Gerrit) ;

Language

Français

Main themes

Financial statements, balance sheet, income statement and cash flow statement. Financial statements analysis. Solvability, liquidity and profitability. Financing decisions. Issues of common shares or corporate bonds. Capital budgeting decisions

Aims

Objectives (in terms of competencies) 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.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

Content

Overview of the financial statements. 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

N / A

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