Financial Management and Investment Decisions

  • Basic terms of financial planning
  • Static investment appraisal methods (cost comparison method, profit comparison method, average return method)
  • Dynamic investment appraisal methods (net present value, internal rate of return, annuity etc.)
  • Key questions of investment (consideration of risk and taxes, investment planning, optimal useful life)
  • Various forms of financing
  • Equity financing (esp. stocks, stock market, capital market)
  • Internal financing (self-financing, financing through depreciation, financing through accruals etc.)
  • Debt financing (bank loans, bonds, trade credit etc.)
  • Innovative forms of financing (leasing, factoring, mezzanine financing etc.)
  • Cash flow statements
  • Financial planning and liquidity

Mode of delivery

face to face

Type

compulsory

Recommended or required reading and other learning resources/tools

Recommended: Brooks (2019): Financial Management, Core concepts, 4th edition, Pearson

Planned learning activities and teaching methods

Face-to-face learning (input, discussions, written individual and group activities, short presentations of solutions in class), written tests in class

Assessment methods and criteria

Continuous assessment: 30 points can be received through participation in class (mini tests) and 70 points through a written final exam.

Prerequisites and co-requisites

Financial Accounting and Financial Statement Analysis

Infos

Degree programme

European Economy and Business Management (English)

Cycle

Bachelor

ECTS Credits

3.00

Language of instruction

English

Curriculum

Full-Time

Academic year

2023

Semester

3 WS

Incoming

No

Learning outcome

After successful completion of this course, students can

  • name the various forms of financing, and outline advantages and disadvantages,
  • prepare a comparison to select adequate forms of financing,
  • evaluate the liquidity situation
  • select decision-relevant data for investment projects and aggregate them into meaningful reports
  • identify use cases for static and dynamic investment appraisal methods
  • apply dynamic investment appraisal methods to decide on the allocation of financial resources to investment projects and thereby
  • help prepare investment decisions.

Course code

1389-20-01-VZ-DE-23