Main themes

The basic aims of this course are:
1. to introduce students to the main concepts and methods concerning a rational resolution to the problems of financial decision-making that occur in enterprises in a private economy context, by situating these decision-making problems in their institutional (financing techniques and taxation) and economic (functioning of the finance market) context;
2. to develop participants' ability to resolve elementary problems of financial decision-making in a practical manner (e.g. structural and financial decision-making, and investment decisions).

Content and teaching methods

Content
The course is in four parts. Ideally, they should be addressed in the following order:
1. The framework of financial decision-making
a. the economic context:
- the principles of portfolio management;
- the finance market, the interest rate and discounting;
b. the functional setting:
- the financial function in enterprises;
- problems and decisions relating to the enterprise's finances;
c. the institutional setting:
- sources and techniques of (short- and long-term) financing;
- taxation and financial management.
2. The cost of capital and the financial structure
a. the cost of sources of finance:
- the concept of the cost of a financial asset;
- the cost of loans, own funds and leasing;
b. the concept of the average weighted cost of capital
c. the financial structure:
- debt policy;
- dividend policy.
3. Investment decision-making
a. the development of projects and criteria of choice:
- investment flows;
- measuring profitability;
b. drawing up an investment plan
c. complements:
- investment decision-making;
- investment decision-making and risk;
- the decision to disinvest.
4. Short-term financial management
a. the financial aspects of needs in respect of working capital:
- the financial aspects of managing stocks and commercial debt;
- determining the necessary net working capital;
b. financial planning:
- forecasting and managing the cash position;
- drawing up financial statement forecasts.
Methodology
The course mainly relies on an active method that reduces lectures to a minimum. It is based on a syllabus wherein prior reading will enable each student to prepare for sessions individually. These sessions will be devoted to explanations, discussions and illustrations relating to the subject.

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