Assessment of company development projects 2600-MFBRdz2raOPRP
Full description 1. Areas of Corporate Financial Management in the Long Term. Long-term objectives and evaluation criteria of the enterprise. Project assessment criteria: corporate finance perspective versus project finance.
2. Feasibility Studies of corporate projects and infrastructure projects.
3. Sustainable Growth Rate (SGR): real, financial, and social dimensions. Calculation of the sustainable growth rate.
4. Equity Capital as a Long-Term Source of Corporate Financing. Decisions regarding the public listing of enterprises (Initial Public Offering, IPO).
5. Bonds as a Long-Term Source of Corporate Financing. Financial risk analysis. Case study.
6. Hybrid Sources of Long-Term Financing. Leasing.
7. Use of Short-Term Instruments in Long-Term Corporate Financing. Risk analysis.
8. Valuation of the Cost of Capital. Components of the cost of capital: debt and common equity. Single-factor and multi-factor models. Cost calculations using regression analysis. Hamada’s model. Weighted Average Cost of Capital (WACC). Optimization of the capital structure. Conditions for applying the models. Case study.
9. Evaluation of Corporate Investment Projects. Valuation of incremental cash flows. Financial planning. Non-standard distributions of investment cash flows. Case study.
10. Project Evaluation Criteria: Net Present Value (NPV), Net Present Value Ratio (NPVR), Adjusted Present Value (APV), Internal Rate of Return (IRR), multiple internal rates of return, Modified Internal Rate of Return (MIRR), Discounted Payback Period (DPP), Economic Value (EV). Project analysis for different operational lifespans. Assessment of project abandonment efficiency.
11. Optimization of the Scale and Scope of the Investment Program. Capital rationing. Case study.
12. Project Analysis under Inflationary Conditions.
13. Evaluation of Investment Decisions under Risk Conditions. Certainty equivalent approach. Decision trees. Scenario analysis. Simulation analysis (Monte Carlo analysis). Long-term covenant analysis. Case study.
14. Application of Real Options in the Evaluation of Development Projects. Classifications of real options. Options and development strategies. Case study.
15. Evaluation of Non-Profit Investments. Investments with expenditure cash flows. Evaluation of infrastructure investments. Social discount rate. Case study.
Type of course
Mode
Course coordinators
Learning outcomes
Learning outcomes After completing the course, the student:
In the scope of knowledge:
• Knows and deeply understands the terminology related to the financial management of a company within the discipline of management science and quality, as well as in complementary disciplines (economics and finance, legal studies). (S3_W01)
• Knows and deeply understands the principles, procedures, and practices related to the financial management of a company. (S3_W02)
• Knows and deeply understands the economic theories and models related to the financial management of a company. (S3_W03)
• Knows and deeply understands the complex technological, social, political, legal, economic, and ecological processes and phenomena, and their impact on the financial management of a company. (S3_W05).
In terms of skills:
• Is able to apply the theory of management science and quality, as well as complementary sciences (economics and finance, legal studies), to recognize, diagnose, and solve problems related to the financial management of a company, using the appropriate selection of sources and adapting or developing new methods. (S3_U01).
• Is able to correctly interpret complex technological, social, political, legal, economic, and ecological processes and phenomena and their impact on the financial management of a company, using the appropriate selection of sources. (S3_U02)
• Is able to independently and collaboratively prepare analyses, diagnoses, and reports on complex and unusual problems related to the financial management of a company, and effectively present them, including in English, using information and communication tools. (S3_U03)
• Is able to plan, organize, and lead teamwork. (S3_U04)
• Has the ability to self-educate, improve acquired qualifications, and support others in this respect. (S3_U05)
In terms of attitudes:
• Is ready to evaluate and critically approach complex situations and phenomena related to the financial management of a company. (S3_K01)
• Is ready to adhere to and develop professional ethical standards in financial management of a company. (S3_K02).
Assessment criteria
• Final written test examination – conducted in an on-site format (in the case of numerical responses, submission of calculations is required) – 80%, i.e., 80 points.
• Homework assignments – Excel-based financial models – 20%, i.e., 20 points.
• Semester project – comprehensive evaluation of an investment project, - feasibility study of the designed project – 30%, i.e., 30 points.
• An additional requirement for passing the course is obtaining at least 50% of the points from the written test examination.
Practical placement
Professional internships are not required for the completion of the course.
Bibliography
Literatura Literatura podstawowa:
• Chmielewska A., Cieślik R., Lipski M.,, Postuła M, Projekty inwestycyjne. Jak nie wpaść w pułapkę (nie)zrównoważonego rozwoju, Difin.2023
Literatura uzupełniająca:
• Cieślik R., Postuła M. (red.) Projekty inwestycyjne. Finansowanie, budżetowanie, ocena efektywności, Difin, 2016.
• Behrens W., Hawranek P.M., Poradnik przygotowania przemysłowych studiów feasibility, Wydanie poprawione i rozszerzone, UNIDO, Warszawa 1993.
• Bodmer E. Corporate and Project Finance Modeling. Theory and Practice. Wiley, Hoboken 2015.
• Rogowski W. Rachunek efektywności inwestycji, Wolters Kluwer, 2013.
• Jajuga K., Jajuga T. Inwestycje. Instrumenty finansowe, aktywa niefinansowe, ryzyko finansowe, inżynieria finansowa, Wydawnictwo Naukowe PWN, Warszawa 2015..
Literatura dodatkowa (etyka, artykuły naukowe, kontekst społeczny, …):
• Sandel M. Czego nie można kupić za pieniądze, Kurhaus Publishing, 2013.
• Wybrane artykuły z: „Journal of Applied Corporate Finance”, “McKinsey on Finance”, “CFO Journal”, (WSJ - Deloitte), Boston Consulting Group Reports.
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Term 2025Z:
Bibliography Basic literature: Supplementary literature: Additional literature (ethics, scientific articles, social context, ...) |
Additional information
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