Business Finance (GRAI009)

Course Description

The starting point and also underlying theoretical insight of the course develops understanding the business organization as a value maximizing entity and then progressively covers the necessary theoretical models and practical tools for value-adding business decision making, such as: understanding and analyzing information of financial statements, calculation and analysis of financial ratios, understanding Time Value of Money, knowing principles of functioning of Financial Markets, applying principals of cost accounting, defining business risks,. Course ends with the insights to company project valuation and capital financing decisions, dividend policy. Therefore, different financial disciplines, such as Financial Accounting, Management Accounting and Financial Management are integrated into this course in a way that necessary informational links between them could be traced and relevant analytical support for business decision making ensured. Multiple learning formats are used throughout the course, including lectures, workshops, group work assignments and classroom presentations and discussions. Problem solving activities are extensively used in class sessions, study groups and individually, in order to develop necessary analytical skills.

Course Aim

The course is designed to develop the insights and skills, necessary to analyze and structure business financial information, to make financial forecasts and apply valuation models, supporting value-adding business decisions.

Learning outcomes

  • Understand the concept of value creation of a business and apply the main financial measures of the value and its’ elements.
  • Understand the business entity model, represented by financial reports and to be able to apply analysis tools and techniques for business financial problems identification.
  • To be able to apply the concept of Time Value of Money in solving different problems related with financing and investments.
  • To understand major principles of functioning of financial markets and to be able to distinguish between different financial instruments.
  • Understand risk-return model and Net Present Value concept and apply them for financial valuation of capital investment projects.
  • To make simplified profit forecasts for short and long periods, while applying the principles of relevant revenue and costs classification and behavior.
  • Understand the concept of business capital structure and capital costs and apply them for making the decisions on sources and instruments of business finance.
  • Be able to apply the relevant and logical structuring, reporting and clear explanation of the financial information while presenting the problem definition and its solution.