Finance

5.00 credits

45.0 h + 20.0 h

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 :

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

One part of the lectures are devoted to the principles of finance and the basics of financial reasoning:

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

The other part of the lectures deal with case studies addressing topics related to both sustainability and finance.

Teaching methods

Online course
Flipped classroom
Exercises using Excel (in small groups)
Case studies in class (mixing sustainability and finance)

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.

Bibliography

Berk & DeMarzo, Finance d’entreprise (version française), Pearson, 5e édition, 2020
Vernimmen, Quiry & Le Fur, Finance d’entreprise, 20e édition (Dalloz, 2022)
Principles of Corporate Finance: Global Edition, 11ème édition, Brealey, Myers & Allen, McGraw-Hill 2014.

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

Bachelor in Management

GESM1BA