Basic Elements of Financing

• 26 hrs lectures
• 13 hrs exercises

Knowledge: After completing the course, student knows basic of corporate financial management, he/she is aware about methods of working capital management as well as capital budgeting methods. Moreover, he/she is aware of financial analysis methods and indicators.
Skills: Student is able to assess the financial condition of a company and he/she is able to identify its weakness, while he/she is able to assess the investment project based on given information.

The aim of the course is to provide students with basic knowledge on corporate financial management. Especially the possibilities of financing company's activities, assessing current financial performance and assessing the effectiveness of future investments projects.

The knowledge of financial statements, corporate-economic terminology, the knowledge of mathematical functions.

• BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8

LECTURES:
1Introduction. Company as a part of financial system.
2. Founding budget.
3. Working capital management - inventories and accounts receivable management.
4. Capital budgeting and investment decission methods.
5. Financing business: Internal financial resources
6. Financing business: Debt financing
7. Financing business: External equity financing.
8. Cash flow - cash inflows and outflows. Cash flow statement.
9. Financial aim of doing business and its assessment. Corporate financial analysis procedure..
10. Analysis of diferential indicators and financial ratios analysis (part 1).
11. Financial ratios analysis (part 2).
12. Financial distress prediction models

SEMINARS:
1. Founding budget
2. Inventories management
3. Capital budgeting.
4. Loan repayments
5. Financial analysis (part 1)
6. Financial analysis (part 2)
Test

CREDIT REQUIREMENTS:
● Seminars’ attendance – student is required to actively being attend the seminars (i.e. being prepared in advance for the seminars and work during the seminars under the teacher’s guidance). The presence at the seminars is subject to control, one absence is allowed.
● Seminar test – student is required to take a test in the end of semester, the test will deal with cases only. The maximum achievable test is assessment is 35 point, while the minimum required assessment is 17.5 points. The final test will contained several cases to solve. The test cases will be based on cases discussed throughout the seminars or subjected to homework.


WAY OF EXAMINATIONS:
The final exam test is written, while there is 60 minutes time for solving it. The maximum assessment is 65 points. The final test will consist of following parts:
● 5 closed-ended questions (4 possible answers, only 1 correct) – 4 points for each question (i.e. maximum of 20 points for this part).
● 2 open-ended

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is required and checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.