Finance I

The students will be familiar with the decisions taken by the financial managers and the available financial instruments that assist them in order to achieve an efficient operation of the business. There will be a short presentation of the available business forms of business organizations and an analysis of contemporary issues, such as the principal-agent problem, corporate governance and corporate social responsibility. A key pillar of this course is to develop the concept of time value of money. In this context, we will define the methods of estimating the present and future value of a sum or an annuity payment. Having as starting point the time value of money, the lectures will then focus on the methods of calculating the present value of shares. Along with determining the value of shares, there will be a description of the main characteristics and features of preferred and common stocks. Finally, we will define the theories that are used to determine the required rate of return, which allows the determination of the discount rate in order to calculate the fair value of shares.

Objectives

not available

Prerequisites

not available

Syllabus

The course covers the following topics: The content and usefulness of Finance. The basic distinctions and the international dimension of Finance. The financial system. The financial products and markets. The various business forms. Corporate governance. Corporate social responsibility. The time value of money. The common and preferred shares. The basic equity valuation principles. The required rate of return. The dividend discount model. The use of multiples for equity valuation.