Financial Management 2600-MSMdz1ZF
Lecture:
1. Principles, objectives and functions of financial management. The relationship between finance and other areas of business.
2. Capital market efficiency,
3. Introduction to Corporate Valuation and the Concept of Value Management.
4. Financial and non-financial (ESG) investment appraisal.
5. Risk vs. rate of return. (Risk diversification, portfolio theory, CAPM capital asset pricing models).
6. Linking investment and financial decisions.
7. Use of real options in corporate finance.
8. Short-term financial management of the enterprise. Assessment of the impact of short-term decisions on the financial situation of the enterprise.
9. Selected topics in financial management, including international markets, behavioral aspects. Unresolved issues in finance.
Exercises:
1 Introduction to Corporate Valuation and the Concept of Value Management.
• factors of value creation,
• the concept of value based management (VBM) vs. the concept of shareholder value management (SHV),
• intrinsic value vs. current stock price -factors of imbalance,
• methods of business valuation
• Capital market efficiency,
2. Corporate investment and financial decisions - an analysis of connections
• capital structure and dividend policy
• Modigliani-Miller's theorems,
• substitution theory
• signalling effects
• agency cost of equity and debt,
• the theory of hierarchy of financing
• efficiency and principles of equity and debt capital issuance,
3. Risk and return
4.. Investment decisions and their evaluation
• Incremental cash flow valuation
• Capital rationing,
• Effects of price changes and inflation, taxes
5. Mergers and restructuring of enterprises
the theory of mergers and acquisitions and its motives,
• definition of the value of a merger and defensive tactics against a hostile takeover,
• rationale, types and tools of corporate restructuring
6. Short-term financial management of enterprises
• formation of current asset structures,
• concept of working capital and net working capital,
• operating cycle,
• cash conversion cycle,
• liquidity,
• liquidity vs. solvency,
• shaping of inventories,
• cash shaping,
• trading securities,
• shaping receivables,
• principles of financing current assets,
• cash budget.
Type of course
Mode
Course coordinators
Learning outcomes
After completing the course, the student:
S1_W01
Knows and understands at an advanced level the terminology related to accounting in business organizations in the disciplines of economics and finance and in complementary disciplines (management and quality sciences, legal sciences).
S1_W02
Knows and understands at an advanced level the principles, procedures and practices relating to accounting in business organizations.
S1_W03
Knows and understands at an advanced level economic theories and models relating to accounting in business organizations.
S1_W05
Knows and understands to an advanced degree technological, social, political, legal, economic and ecological processes and phenomena as well as their impact on accounting in business organizations.
S1_U01
Is able to use the theory of the discipline of economics and finance and complementary disciplines (management and quality sciences, legal sciences) to recognize, diagnose and solve problems related to accounting in business organizations, using the appropriate selection of sources and adapting existing methods.
S1_U02
Is able to correctly interpret technological, social, political, legal, economic and ecological processes and phenomena and their impact on accounting in business organizations, using the appropriate selection of sources.
S1_U03
Is able to independently and collectively prepare analyses, diagnoses and reports regarding accounting in business organizations and present them communicatively, also in English - using IT and communication tools.
S1_U04
Able to plan and organize own and team work.
S1_U05
Has the ability to self-educate and improve acquired qualifications.
S1_K01
Is ready to assess and critically approach situations and phenomena related to accounting in business organizations.
S1_K02
Is ready to comply with professional ethical standards regarding accounting in business organizations.
Assessment criteria
Lecture:
• written examination in the form of a single-choice test.
Exercises:
• 80% - exam (test, computational tasks and descriptive questions),
• 20% - individual and group homework assignments.
Bibliography
Primary bibliography:
• Brigham E., Houston J. (2015) Zarządzanie finansami, Wydawnictwo Naukowe PWN Warszawa
• Cieślik F., Postuła M.(ed.) (2020), Zarządzanie finansami przedsiębiorstwa – teoria i praktyka, Wydawnictwo Naukowe Wydziału Zarządzania UW, Warszawa 2020.
Supplementary bibliography::
• Sopoćko A., (2011) Rynkowe instrumenty finansowe, Wydawnictwo Naukowe PWN Warszawa
• Czerwonka L., (2018) Zarządzanie finansami. Wprowadzenie przykłady i zadania, C.H. BECK Warszawa
• Rutkowski A. (2016) Zarządzanie finansami, PWE Warszawa
• Brigham E.F., Ehrhardt M.C., (2023) Financial Management: Theory & Practice, Cengage Learning.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: