Finance

mgest1219  2022-2023  Mons

Finance
5.00 credits
45.0 h + 20.0 h
Q2
Teacher(s)
D'Hondt Catherine; Platten Isabelle;
Language
French
Main themes
The introductory finance course:
  • Presents the discipline, its challenges and frames learning, particularly with regard to recent developments in sustainable finance;
  • Develops classic financial reasoning, with the consideration of time and risk in the analysis of the financial decision;
  • Analyzes the investment decision in business and in the financial markets;
  • Introduces the company's means of financing (stocks and bonds) and their evaluation, as well as the impact of the financing method on the profitability and investment projects risk;
  • Develops the ability to solve financial problems (investment, financing, profitability and risk analysis) in a digital environment, using a spreadsheet.
Learning outcomes

At the end of this learning unit, the student is able to :

1 Given the « competencies referential » linked to the LSM Bachelor in Management and Business Engineering, this course mainly develops the following competencies:
  • 1.3. Analyse a situation responsibly, taking into account the economic, social and environmental impact on the various stakeholders.
  • 2.1. Understand the basic concepts and theories in each of the fields of management and economics.
  • 3.2. Apply clear and structured analytical reasoning, conceptual frameworks and science-based models to describe and analyse a simple but concrete problem and offer a solution.
  • 5.4. Use software from different fields to solve a management problem.
  • 8.4. Using computer tools, create graphs and tables that meet scientific standards.
  • 9.1. Self-management: define your priorities, plan ahead and organise all aspects of your work over time, be rigorous and structured in your approach.
  • 9.4. Adapt to, and take advantage of, a variety of learning situations.

At the end of the class, the student will be able to:
  • position finance and the challenges of sustainable finance within management disciplines;
  • master financial algebra, profitability calculation, actuarial cost calculation, use of a spreadsheet for financial calculation;
  • explain the fundamental concepts of finance (price and value, profitability and risk, arbitrage);
  • solve (with a spreadsheet) problems formulated by the financial management of a company, namely the choice of investments and the choice of financing;
  • value in simple models the main financial assets traded on the markets (stocks & bonds).
 
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
  • MOOC
  • Flipped classroom
  • Exercises
Evaluation methods
Within this course, students' skills assessment is twofold :
• Ongoing formative assessment with homeworks (quiz and exercices) during the semester (0% of the final grade)
• Written exam with open questions in session (100% of the final grade)
Other information
Flipped classroom implies students seeing the material beforehand (such as viewing a lecture online) prior to the in-class discussion of the material.
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.
Teaching materials
  • https://www.edx.org/course/les-principes-de-la-finance
Faculty or entity
CLSM


Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Sigle
Credits
Prerequisites
Learning outcomes
Bachelor : Business Engineering
INGM1BA
5
Bachelor in Management
GESM1BA
5