Basic Elements of Financing

• 26 hrs lectures
• 13 hrs exercises

The aim of the subject is to provide students with the basics of financial management. To do so, it is necessary to cope with the modern approaches in defining the business needs, defining the possible sources of finance, moreover to manage the current methods of evaluating the asset and financial structure of the businesss, methods of capital budgeting and investmens evaluation and above that the topic dealing with the cash flow and working capital management.

The knowledge of financial statements, business and economic terminology, the knowledge of mathematical functions

• BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8

1. Introduction to the subject. Company as a part of the financial system.
2. Founding budget. Production factors and its consumption.
3. Working capital management - inventories and receivables. The asset life cycle in the company.
4. Capital budgeting - budgeting capital income and expenditures. Methods of assesing the investment projects. .
5. Financing business - internal souces of finance.
6. Financing business - short-term souces of finance.
7. Financing business - long-term souces of finance.
8. Cash flow of the company – income, expenditure, methods of assesing the cash flow statement
9. Financial goals of the company and its evaluation. The procedure of analysing financial statements.
10. Differential indicator analysis. Financial ratio analysis - part 1
11. Financial ratio analysis - part 2
12. Company profitability and capital structure analysis
13. Indicators of overall financial health of the corporate

1. Content of the Subject. Requirements. Basics of Financial Mathematics (interest).
2. Basics of Financial Mathematics (saving, annuity).
3. Loans. Building society accounts.
4. Methods of stock's intrinsic value determination. Bonds valuation - duration, convexity, risk, return, yields.
5. Seminar work presentation.
6. Test.

The credit requirements:
a) An active participation in the classes.
b) The seminar test: The student is expected to pass a test in the end of semester, the test will be focused on examples. In case of test assesment over 17.5 point the students will pass succesfully the test (while the maximum assesment is 35 points).
In case of failure, there is a chance to take a resit.
The overall subject assesment: The assesment of the seminar is a part of the overall subject assesment. The final exam is focused on verification both the theoretical and practical knowledge of the student. The final exam is written and twith an time limit of 1 hour. There are multiple choise question - differently difficulty, examples and open-ended questions in the final test.
The maximum assesment of the final test is 65 points.
For succesfully passing the subject a minumum of 50 per cent of the final test is required.

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

The maximum number of absences in the seminar is two. The way of apology for an absence is in the line with BUT regulations.