Corporate Finance and Investment Project Appraisal 1600-SZD-SPEC-FK-ZJ
The primary objective of this course is to provide doctoral students with the fundamental theoretical and practical frameworks necessary to analyze research problems from the perspective of financial viability. The curriculum is designed for individuals who have not previously engaged with corporate finance, as well as for those with a financial background who wish to examine these issues through a research-oriented lens. 1. Introduction to Finance: Discussion of modern financial paradigms, agency theory, and the role of capital markets in corporate decision-making processes. 2. Future Value and Present Value: Practical application of discounting and capitalization mechanisms in the valuation of time-distributed cash flows. 3. Financial Statements: Analysis of the structure and interrelationships between the balance sheet, the profit and loss account (income statement), and the cash flow statement. 4. Financial Statement Analysis: Utilization of profitability, liquidity, and leverage ratios for a comprehensive assessment of a firm's economic standing. 5. Project Risk Analysis: Application of sensitivity analysis, scenario planning, and probabilistic simulations in forecasting investment outcomes. 6. The CAPM Model: Determining the cost of equity based on the valuation of systematic risk and the beta coefficient. 7. The WACC Model: Estimating the Weighted Average Cost of Capital as a hurdle rate for new corporate investments. 8. Investment Appraisal: Comparative efficiency analysis of projects using NPV (Net Present Value), IRR (Internal Rate of Return), and both static and discounted payback periods. 9. Project Valuation: Construction of DCF (Discounted Cash Flow) models and the application of multiple-based valuation to determine terminal value. 10. Final Project: Independent development and presentation of a comprehensive financial model for a selected business venture.
Course coordinators
Learning outcomes
Knowledge | The graduate knows and understands:
WG_02 - the main development trends in the disciplines of the social sciences in which the education is provided
Skills | The graduate is able to:
UW_01 – make use of knowledge from various fields of science, in particular the social sciences in order to creatively identify, formulate and innovatively solve complex problems or perform tasks of a research nature, and in particular to: define the purpose and object of scientific research in the field of the social sciences, formulate a research hypothesis; develop research methods, techniques and tools and apply them creatively; make inferences based on scientific findings
UK_04 - participating in scientific discourse in the field of the social sciences
Social competences | The graduate is ready to
KK_01 - critically evaluating achievements within a given scientific discipline in the field of the social sciences
Other: WG_03 – main development trends in corporate finance theory, including the evolution of asset pricing models (CAPM) and the concept of the weighted average cost of capital (WACC) in financial decision-making.
and other:
Skills | Can do:
UW_02 – uses knowledge in accounting and finance to identify and solve complex decision-making problems; is able, based on financial statements, to formulate research objectives in the area of profitability and liquidity of projects.
KK_02 – critically evaluates the usefulness of classical financial models (such as NPV or CAPM) in scientific research and business practice, demonstrating an understanding of their limitations and ensuring the reliability of conducted analyses.
Assessment criteria
Description of requirements related to participation in classes, including the permitted number of explained absences:
Attendance PolicyUnexcused Absences: Students are permitted a maximum of two (2) unexcused absences.
Excused Absences: In the case of excused absences, students may make up the missed coursework through alternative methods, subject to prior arrangement with the lecturer. This may include, for example, passing a competency test covering the material presented during the missed session.
Principles for passing the classes and the subject (including resit session): Course credit is awarded based on the preparation of a project evaluating a selected business venture from a financial perspective. It is highly recommended that the project aligns with the doctoral student’s ongoing professional work or academic research, thereby facilitating the direct implementation of the practical aspects of the course into their primary research activities.
Methods for the verification of learning outcomes: Completion of the course is based on the submission of the project and its oral defense during the final class session.
Evaluation criteria: The final grade will be based on the accuracy and logical consistency of the submitted project, as well as the student’s ability to effectively present the subject matter.
Bibliography
Publikacje dostępne online: Podstawowe: 1. Frederic S. Mishkin - Financial Markets and Institutions, Global Edition Oraz uzupełniające również dostępne online: 2. Richard Pike & Bill Neale - Corporate Finance and Investment. 3. Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi - Corporate Finance. 4. Aswath Damodaran - Applied Corporate Finance. 5. Pierre Vernimmen - Corporate Finance