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Introduction to Finance (FIN113)

Course description

This is an introductory course created for the students who have no finance knowledge. Since finance is a broad topic, course intention is to give students basic experience and understanding, as well as to focus their attention to certain practical issues they can further explore later. The course is created in order to gives students an overview of finance concepts, terminology, and principles. It introduces students to the modern methods of managing finance, both on personal and firm level (including both SMEs and companies). It covers basic financial theories, application of those theories in everyday life, financial management and investments.

Aims of the course

The course is intended to introduce students to the main elements, methods and principles of finance. It will provide basic knowledge and skills applicable both in personal and managerial finance.

Learning outcomes

  • Analyze goals of the firm and role of the financial manager in financial decision making.
  • Analyze financial markets and their environment, including the Financial crisis of 2008.
  • Apply concepts of time value of money to solve various problems. Analyze financial statements using various ratios. Explain the meaning of various financial ratios.
  • Prepare and explain financial statements: Balance sheet, Income statement, Cash flow statement. Evaluate proforma financial statements and budgets.
  • Apply the basic valuation model to bonds and describe the impact of required returns and time to maturity on bond value.
  • Understand and evaluate relationships among financial decisions, return, risk, and the firm value. Calculate value of dividends, value of the company using various models.
  • Calculate company's WACC and discuss alternative weighting schemes.
  • Work in teams, present work results in writing and oral presentation.
Syllabus
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