Financial Management

22C9022

Bachelor

Chinese

5.0

only summer term

1 semester

The two primary objectives of this course are

1. to increase students’ knowledge about the dynamics of capital in a firm or a project.
2. to provide basic theories related to financial management that will help students with future study and research.

Part 1: Introduction to financial management (FM) agency theory, signaling theory, stakeholder theory and corporate social responsibility

Part 2: Financial statements and financial statement analysis

Part 3 The time value of money and discounted cash flow valuation

Part 4 : Methods to evaluate investment and making investment decisions

Part 5: Risk, return and cost of capital

Part 6 : Financial leverage and capital structure

The total workload for the module is 150 hours (see also "ECTS credit points and grading").

• Portfolio exam

The portfolio examination consists of

PFP1: a written project report (30%) and a two-hour exam (70%)
PFP2: a written project report (30%) and a written paper (70%)
PFP3: a one-hour exam (30%) and a two-hour exam (70%)

Written project report: approx. 15-20 pages

Written paper: approx. 10-15 pages

Written examination: in accordance with the valid study regulations

The requirements are specified in the relevant class.

None

Students who successfully complete this module

1. know the concepts of finance and financial management (FM).

2. know the purpose of FM.

3. know the basic theories related to FM.

4. know the difference between book value and market value.

5. know the concepts of the time value of money, how to calculate and apply it.

Students who successfully complete this module

1. understand the information provided in financial statements.

2. understand the Net Present Value and how to evaluate a project by using it.

3. understand how to determine the relevant cash flows for various types of proposed investments.

4. understand how to evaluate the equivalent annual cost of a project.

5. understand the relationship between risk and expected return.

6. understand the systematic risk principle.

7. understand the effect of financial leverage on a firm’s profit.

8. understand the impact of taxes and bankruptcy on capital structure choice.

Students who successfully complete this module

1. are able to calculate payback and discounted payback and understand their shortcomings.

2. understand accounting rates of return and their shortcomings.

3. are able to calculate internal rates of return (standard and modified) and understand their strengths and weaknesses.

4. are able to calculate the net present value and understand why it is the best decision criterion.

5. know how to calculate and explain important financial ratio.

6. know how to evaluate the discounted cash flow.

7. know how to calculate the return on an investment (average returns and the variability of returns).

8. know how to calculate expected returns.

9. know how to determine a firm’s cost of equity capital and overall cost of capital.

The students are given an introduction to financial management, financial statement analysis, financial budget and control, time value of money and valuation of security, risk and reward, and the process of cycling through these methods. They are then given an introduction to investment management, capital cost and capital structure, fund-raising management, working capital management and dividend distribution management, as well as the changes and circulation of these capital forms.

Through the study of this course, students can master basic concepts, theories and analysis methods of financial management; they are able to use the basic theories and methods of financial management to analyze and solve problems of investment decisions, financing decisions, dividend theory distribution, financial planning and financial analysis in enterprise financial management.

Students will engage in groups and teamwork throughout the course, thus enhancing teamworking and cooperation skills. 

By taking this course, students will have correct values, especially the professional quality of financial personnel. 

Accounting

• International Event Management Shanghai (IEMS), B.A.

• Werner, Kim

• Werner, Kim

Zhang Qiang