Course Topics
• Financial decisions and key ideas in finance: Time, money, and interest rates • Capital budgeting techniques • Risk and return • Bonds • Valuing projects • Stocks • Portfolio investment theory and the CAPM • Cost of capital • Capital structure • Discounted Cash Flow analysis • Investment under uncertainty • Payout policy • Crowdfunding, decentralized finance, and innovations in finance

Teaching format
Frontal lectures and exercises. In the exercise sessions the students will apply Microsoft Excel to solve financial problems and examine case studies

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 - Knowledge and understanding ILO 1.1. methods for calculating various performance and value measures ILO 1.2. business valuation models ILO 1.3. investment analysis and planning ILO 1.4. risk measurement, cost of capital and financial structure ILO 1.5. capital structure, payment system and working capital management ILO 2 - Ability to apply knowledge and understanding ILO 2.1. financial, economic and equity indicators for business decisions ILO 2.2. decision-making system in conditions of uncertainty ILO 2.3. Business valuation models for investment decisions ILO 2.4. Market indicator system for investment decisions ILO 2.5. Analysis of the capital market and risk pricing system ILO 2.6. Basic concepts useful for following courses in economics, business and administration ILO 3 - Making judgements ILO 3.1. Identifying the most relevant variables to use when making decisions in complex situations; ILO 3.2. Reporting analytically and critically on information, empirical evidence and data in order to make appropriate economic and managerial decisions; ILO 3.3. Evaluate the most appropriate quantitative and qualitative analytical tools to assist the decision-making process; ILO 3.4. Use logical arguments and relate information and analytical tools to find solutions. ILO 4 - Making judgements (Communication skills) ILO 4.1. Finally, the final exam offers students an excellent opportunity to integrate the knowledge they have acquired with their communication skills in a document that represents the culmination of their degree course studies. ILO 4.2. The achievement of this objective will be assessed through written exams, individual and group assignments, and the final degree thesis. ILO 5 - Learning skills ILO 5.1. Ability to find and make use of information from databases, research studies, laws, regulations and standards that are applied in professional life; ILO 5.2. Ability to analyse, critically evaluate and integrate data, information and experiences;

Additional educational objectives and learning outcomes
Knowledge and understanding: • Knowledge and understanding of company valuation models • Knowledge and understanding of option pricing and real options in different activity settings • Knowledge and understanding of investment decision rules Applying knowledge and understanding: • Application of analytical tools for financial statement analysis and modeling • Application of models for investment decisions under uncertainty • Application of real option analysis • -Application of company valuation models for investment decisions Making judgments: Being able to choose the appropriate methods and techniques to be applied in various real-life situations common to the financial industry Communication skills: Ability to explain the results of financial valuation exercises Learning skills: Being able to understand and find a solution for a particular financial problem of a particular investor (or corporation) using analytical reasoning, also supported by quantitative methods implemented using Microsoft Excel software.

Assessment
Exam: Open-book part with numerical exercises in Excel and closed-book written exam part with theoretical review questions for attending and non-attending students. Part of the course grade (20%) is assigned for participating in the Investment Portfolio Challenge where the students will construct the investment portfolios and monitor their performance throughout the course. Exam (ILO 1-5) Investment Portfolio Challenge (ILO 3, 5)

Evaluation criteria
Treatment of attending and non-attending students for assessment is alike. Students who participate in the Investment Challenge sit in on exam for 80% grade, with additional 20% grade coming from the Investment Challenge. Students who do not participate in the Investment Challenge sit in on longer exam with additional questions for 100% of the grade. Relevant for exam assessment: theoretical knowledge of the concepts covered in the slides and explained in class, and ability to solve financial problems with the help of Microsoft Excel software as explained during the exercise sessions

Required readings

CFA Program Curriculum 2020 Level I, Volumes 4 – 5. Wiley,2017. ISBN: 1-942471-85-8 (library e-book)

Supplementary readings

R. Brealey-S. Myers-F. Allen, Principles of Corporate Finance, 12th edition, McGraw-Hill, 2017

Further information
no