Financial management

Course unit code: M2.B.1. Master program “Production management”.

Type of the course unit: compulsory

Level of course unit: second

Year of study: 2 year of Master program “Production management”.

Semester/ trimester when the course unit is delivered: autumn

Number of ECTS credit allocated: 4 ECTS (credits).

Name of lecturer: associate professor G.Sukhanov.

Learning outcomes of the course unit:

Course Objectives:

To develop critical thinking and problem solving competencies , at both the individual and group levels, of financial statement analysis, financial planning, principles of valuation , capital structure, and issues in financial policy, and to apply financial theory to analyze real life situation in environment with an incomplete data set.

Student Leaning Outcomes:

  • Use Financial Statements to evaluate firm performance.
  • Project Financial Statements
  • Use Financial Statements to obtain Cash Flows for the firm and equity holders.
  • Calculate and project Free Cash Flow.
  • Determine financial drivers of Free Cash Flow.
  • Calculate the cost of debt, cost of equity and the Cost of Capital.
  • Use DCF and other techniques to value projects and firms; perform risk analysis; analyze Mergers, Acquisitions, Leverage Buyouts and Initial Public Offering.
  • Evaluate alternative financing options.
  • Evaluate the economic and industry environment, domestic and international.
  • Develop hands-on ,pro forma modeling skills using a spreadsheet and/or modeling language.
  • Develop presentation and writing skills.

Mode of delivery: face- to- face.

Prerequisites and co-requisites: knowledge of accounting (Bachelor level).

Course contents:

  • Financial Statement Analysis .
  • Time Value of Money.
  • Risk management.
  • Investment Decision Making.
  • Capital Structure.
  • Financial planning and forecasting.
  • Dividend policy
  • Cash Flow management
  • Valuation Principles

Recommended or required reading:

  • Applied corporate finance. Third edition. Aswath Damodaran. John Wiley and Sons,Inc. 2011.
  • Principles of Corporate Finance +Connected Plus . Richard A Brealey, Stewart C. Myers. The Mc-Grow Hill companies ,2011 .

Required reading:

  • Intermediate financial management Eighth edition, Eugene F. Brigham, `Louis C. Gapenski – Thompson edition, 2004
  • Cost Management: Strategies for business decisions. Second edition. Ronald W.Hilton, Michael W. Maher, Frank H. Seito. McGraw-Hill companies, 2003.
  • Essentials of investments +Connected Plus. Zvi Bodie, Alen Kane, Alan Marcus. The Mc-Grow Hill companies ,2011 .
  • Fundamentals of investment management. Geoffrey Hirt, Stanley Block, The Mc-Grow Hill companies ,2011 .
  • The McGraw-Hill 36-Hour course : Finance for Non-financial Managers. H. George Shoffner, Susan Shelly, Robert Cooke. The Mc-Grow Hill companies, 2010 .

Planned learning activities and teaching methods: lectures, case-studies, gloving problems.

Assessment methods and criteria: exam.

Language of instruction: English