Learning outcomes

This course aims to introduce the concepts of finance and their links between the world of the real economy and the financial sphere. The course is designed to help students understand the role of the financial manager in its globality: corporate financing, shareholder remuneration, financial analysis, risk control, project selection, management of operating liabilities and assets, etc. At the end of the course, the student will have a global view of corporate and market finance. All theoretical elements will be put into context in order to solve financial problems.

Goals

The objectives of the course are as follows: • Understand and carry out a financial analysis of a company; • Valuing an asset, a company or a project; • Establish an informed diagnosis of the value of a company; • Determine the optimal financing structure for a company; • Understand the general functioning of financial markets and the securities traded on them; • Be aware of the concepts related to sustainable finance; • Understand in detail current issues in the light of the financial concepts seen in the course.

Content

The course is divided into two main parts: 

Corporate Finance:

Chap. 2: Balance sheet and income statement analysis
Chap. 3: Forecast accounts
Chap. 4: Financial diagnosis and wealth generation analysis
Chap. 5: Working capital requirements and investments
Chap. 6: Financing
Chap. 7: Company profitability and conclusion of the financial diagnosis
Chap. 8: Interest rates, present and future values
Chap. 9: Asset valuation
Chap. 10: Cost of capital
Chap. 11: Project evaluation and selection

Market Finance:

Chap. 12: Risk and portfolio management
Chap. 13: Financial markets
Chap. 14: Investment banking
Chap. 15: Long-term financing and bonds
Chap. 16: Dividend policy
Chap. 17: Environmental and climate issues

Assessment method

Closed book written examination. The exam covers both knowledge (definition of fundamental theories and concepts) and skills (solving exercises, case studies and recognition of financial concepts). Group work to be carried out during the year. The work consists of the valuation of a company in Excel and the writing of a report. The final grade is composed of 80% of the written exam grade and 20% of the group work grade.

Sources, references and any support material

Foundations of financial management, Block and Hirt, McGraw-Hill. Finance d'Entreprise, Vernimmen, Dalloz. Corporate Finance, Berk & DeMarzo, Pearson

Language of instruction

Français