Financial Management

Bachelor 2024/2025

Category 'Best Course for Career Development'

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'

Category 'Best Course for New Knowledge and Skills'

Type: Compulsory course (International Business)

Area of studies: Management

Delivered by: Department of Financial Management

Where: HSE Graduate School of Business

When: 3 year, 1, 2 module

Mode of studies: offline

Open to: students of one campus

Instructors: Dmitry Lapin

Language: English

ECTS credits: 5

Full Syllabus Ask Question

Abstract

The course covers the current financial environment, basic concepts of financial management and the logic of investment and financial decision-making at the corporate level, principles of managing cash flows of an organization with a view to maximizing the market value of the business. Special attention is paid to the development of practical skills to develop a financial model for an investment project and to assess its economic effectiveness in the context of risks and uncertainties.

Learning Objectives

Formation of complex and systemic knowledge in the field of corporate finance and acquisition of skills for informed investment decisions of projects of development and implementation of digital innovation technologies.

Expected Learning Outcomes

Be able to use key concepts of financial management in practice
Be able to calculate the main financial ratios: ROS, ROE, ROC, turnover ratio and financial leverage.
Be able to calculate the value of an asset based on its cash flows.
Be able to make financial calculations based on the time value of money
Be able to allocate and calculate the company's cash flows
Be able to calculate the cost of capital for various elements: credit, bonds, shares, as well as the weighted average cost of capital
Be able to form an optimal capital structure
Be able to plan operating net working capital
Be able to evaluate the effectiveness of investments in real assets based on key indicators: NPV, IRR, PI, PB and PDB.
Be able to form a various assets investment portfolio of a company
Know how to apply key concepts of financial management
Able to analyze the company’s financial statements to determine the availability of investment resources
Able to make financial calculations based on the time cost of money (discounting/compounding)
Able to allocate and calculate company cash flows (including free cash flow)
Able to calculate the main financial factors and financial leverage.
Able to apply methodologies to evaluate the efficiency of investments in real assets based on key indicators: NPV, IRR, MIRR, PI, PB and PDB
Able to calculate net working capital
Able to use capital cost calculation methods
Able to apply methods of determining the optimal capital structure
Able to apply business valuation methods

Course Contents

Topic 1 – Introduction to financial management.
Topic 2. Cash flows are the basis of financial calculations.
Topic 3. Bonds as a tool for debt financing.
Topic 4. Shares as an equity financing source
Topic 5. Risk and profitability. Investment portfolios
Topic 6. Companies’ Capital Structure
Topic 7. Real assets Investments
Topic 8. Working capital management
Topic 9. Settlements with the owners. The company's dividend policy and value

Assessment Elements

Tests (Smart LMS)
Tests (Smart LMS)
Group Project Task
Final Exam Test
The final exam test is performed in the automatic verification format at the computer class of GSB HSE - SmartLMS . Individual, in-class, closed-book. Duration: 80 min.

Interim Assessment

2024/2025 2nd module
0.4 * Final Exam Test + 0.2 * Group Project Task + 0.2 * Tests (Smart LMS) + 0.2 * Tests (Smart LMS)

Bibliography

Recommended Core Bibliography

Berk, J. B., & DeMarzo, P. M. (2017). Corporate Finance: The Core, Global Edition: Vol. Fourth edition. Pearson.
Corporate finance : theory and practice, Damodaran, A., 2001
Corporate finance, Ross, S. A., 2019
Essentials of corporate finance, Ross, S. A., 2017
Financial management : theory and practice, Ehrhardt, M. C., 2011

Recommended Additional Bibliography

Alexander, G. J., Sharpe, W. F., & Bailey, J. V. (2012). Fundamentals of investments. Slovenia, Europe: Prentice Hall. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.C1BEBDC4
Fundamentals of corporate finance, Brealey, R. A., 2018
Principles of corporate finance, , 2023

Authors

Lapin Dmitrii Gennadevich
Маханева Екатерина Александровна

Course Syllabus