Corporat Finance

obligatory courses

The successfully passing the course realized in first year of teaching: Microeconomics, The Bases of Accountancy, The Financial System of the Economy

The goal of the course is to present in-depth traditional and modern concepts of financial management from the perspective of a manager and a capital market analyst. The task of the course is to provide advanced theory and tools used in practical decisions made in economic organizations and in business consulting. The strongly emphasized practical aspect will relate to issues such as risk identification within the updated formula of capital market efficiency, or the assessment of investment decisions. As part of the discussed content, the results of the latest empirical research in the field of finance and the resulting postulates and areas for further research will be presented. This could be undertaken and verified in research diploma works.

Lecture:

1. Principles, objectives, and functions of financial management:

• Positioning of corporate finance within the science of finance

• Basic importance and definitions related to corporate finance

• Objectives and functions of financial management

• The relationship between finance and other business areas

2. Information contained in basic financial documents

• Fundamental analysis

• Ratio analysis

3. Corporate finance from the perspective of different stakeholders analyzing their financial situation

4. Sources of capital

• Sources of equity capital

• Sources of debt capital

5. Short-term management of corporate finance

6. Investment decisions and their assessment in the short and long term

7. Risk and return

8. The relationship between investment and financial decisions

9. The use of real options in corporate finance

10. Financial management in international markets

Conversation room

1. Fundamental analysis of a company selected individually by each student

2. Assessment of the investment opportunities of the selected business entity

3. Indicator assessment of the analyzed economic entity

4. Analysis of the scale of liabilities in the selected company and opportunities

5. Break-even analysis

6. Financial, operating and combined leverage

Basic Literature:

Cieślik R., Postuła M. (eds.) Financial Management of a Company – Theory and Practice, WN WZ UW, Warsaw 2020.

Postuła M. (ed.) Corporate Finance in Managerial Decisions, WN WZ UW, Warsaw 2016.

Supplementary Literature:

Rutkowski A. Financial Management, PWE, Warsaw 2016.

Ehrhardt M.C., Brigham E.F. Corporate Finance: A Focused Approach, 6th edition, South-Western, 2016.

Selected articles from “McKinsey on Finance”, “The Economist”.

Upon completion of the course, the student:

• Knows and understands the terminology and basic principles and concepts related to corporate management (K_W01).

• Knows and understands, at an advanced level, the principles, procedures, and practices concerning the assessment of financial statements in a corporation (K_W02).

• Knows and understands, at an advanced level, the principles and procedures of creating strategies for corporate financial management (K_W02).

• Knows and understands the basic principles of using various sources of corporate financing (K_W06).

In terms of skills:

• Is able to utilize relationships related to corporate financial management to recognize, diagnose, and solve problems related to the functioning of organizations in the market (K_U01).

• Can correctly interpret technological, social, political, legal, economic, ecological processes, and their impact on the functioning of organizations (K_U02).

• Is able to independently and collaboratively prepare analyses, diagnoses, and reports concerning the functioning of organizations and the sector, and to present them communicatively, using information and communication tools (K_U03).

• Can plan and organize personal and team work (K_U05).

• Has the ability for self-education and to improve acquired qualifications (K_U06).

In terms of attitudes:

• Is ready to assess and critically approach situations and phenomena related to the functioning of organizations in the market, the sector, and the entire economy (K_K01).

• Is ready to think and act entrepreneurially (K_K02).

• Is ready to adhere to ethical standards related to marketing activities (K_K03).

The exam is in the form of a multiple-choice test conducted on the E-learning platform in a lecture hall. In the assessment of the exam, negative and half points are not applied. Only individuals who have passed the exercises are allowed to take the exam. A very good grade from the exercises and attendance at lectures entitle the student to be exempted from the exam.