Teacher(s)

D'Hondt Catherine; Platten Isabelle;

Language

French

Prerequisites

MGEHD1321 ' Accounting and financial analysis
MQAHD1325 ' Management Mathematics

Main themes

- The law of one price
- The time value of money
- Interest rates
- Debt and loans
- Financial statement analysis
- Investment decision rules
- Fundamentals of capital budgeting
- Bond valuation
- Stock valuation
- Risk-return relationship
- Diversification
- Portfolio theory & CAPM
- The cost of capital
- Valuation and financial modeling for investment projects

Aims

At the end of this learning unit, the student is able to :
1	- Understand and master the basics of financial management - Apply valuation technics to standard financial operations - Understand the fundamentals of capital budgeting - Implement the various investment rules and selection criteria to projects

Content

• The law of one price
  
• Time value of money
  
• Annuities
  
• Interest rates
  
• Loans
  
• Selection criteria for investment
  
• How to choose among several projects
  
• Cash-flow determination for a project
  
• Capital budgeting
  
• Bonds
  
• Stocks
  
• Risk
  
• The cost of capital
  
• Capital budgeting - conclusion
  

Teaching methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

• MOOC
• Flipped classroom
• Exercises

Evaluation methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

• Written examination (80%)
  
• Ongoing assessment (20%) : MCQ 
  
• Ongoing assessment score is definitively acquired
  

Online resources

https://www.edx.org/course/les-principes-de-la-finance-0 

Bibliography

• Finance d’entreprise, 4ème édition, Berk &  DeMarzo, Pearson France 2017 (adaptation française).
• Principles of Corporate Finance: Global Edition,  11ème édition, Brealey, Myers & Allen, McGraw-Hill 2014

Faculty or entity

CLSM