Financial Management (FIN102) | ISM

Financial Management (FIN102)


This course unit focuses on the fundamental concepts of corporate finance. It is designed as an introduction to financial management, and covers both theoretical and empirical aspects of capital investment decisions, valuation and financing decisions. This course examines the financial goals of a corporation with an emphasis on value creation. The main goal of the course is to provide theoretical knowledge and practical tools that are required in financial decision-making.

Aims of the course

This course unit aims to provide an understanding of main principles of corporate finance: core investment decision rules, capital budgeting, methods of long- and short-term financing, and associated theoretical and empirical issues.

Learning outcomes

  • Analyse and evaluate company‘s activities and financial condition from financial statements (balance sheet, income statement, cash flow statement) applying financial ratios.
  • Apply the concept of the time value of money to solve various financial problems.
  • Evaluate investment projects using different methods: NPV (net present value) and its alternatives (IRR, payback method, profitability index).
  • Evaluate and compare different methods of long- and short-term financing.
  • Calculate company‘s WACC, interpret it and its components in perfect markets as well as taking taxes into account.
  • Relate the main tasks in financial management and corporate finance, discuss the risk of financial decisions.
  • Overview the process of M&A.
  • Work in teams, present work results both in writing and orally, substantiate decisions taken.