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Course module: B-MSBFIMA
B-MSBFIMA
Financial Management
Course info
Course codeB-MSBFIMA
EC5
Course goals
After completing the financial management course, students:
  • Understand the role of the finance function in organizations;
  • Understand the differences between accrual accounting (costs and revenues) and cash flow accounting (cash inflows and cash outflows), and can apply the concept in managerial decision making;
  • Understand and interpret the key components of annual reports, and apply ratio analysis;
  • Understand and apply cost-volume-profit analysis;
  • Understand and identify the components of management control systems;
  • Understand the consequences of the definition of responsibility centers in organizations;
  • Understand and apply the concept of performance management;
  • Understand and can apply the concept time value of money (including annuities and perpetuities)
  • Understand the differences between debt and equity;
  • Understand and can apply bond valuation and stock valuation concepts and models;
  • Understand and can apply capital budgeting decision rules;
  • Understand and can apply the risk and return trade-off, the capital asset pricing model (CAPM), and the weighted average cost of capital (WACC);
Content
The course Financial management discusses various aspects related to the accounting, investment and financing decisions faces by organizations. Accounting refers to the process of identifying, measuring and communicating economic information about an organization for the purpose of making decisions and informed judgments. In the first part of the course, the finance function, the annual report and the associated financial statements are discussed. Next, cost behavior and cost allocation, performance management, governance, and management control systems are introduced. In the finance part, investment and financing decisions are investigated. Suppose that a firm can choose between several potential projects to invest in. How should the firm decide which project to pursue? Several methods will be discussed in the course. New projects also require additional funding. Firms are generally financed by both equity and debt. What determines the value of a firm’s stocks and bonds, or in other words, for which value can the firm issue new instruments to increase funding?

Work format:
  • Lectures, tutorials, work groups, presentations
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Kies de Nederlandse taal