Introduction to Finance

Test:

Exam: E-Exam, 60 Min. (6 CP)




Expected prior knowledge:

Basic mathematical skills




Examination Requirements:

• Demonstration of knowledge of basic financial concepts and the ability to use these basic concepts correctly in a professional context.


• Demonstration of an understanding of the economic fundamentals of investment theory.


• Ability to present, define and correctly apply the key methods of investment appraisal.


• Demonstration of an understanding of the basic concept for structuring and solving decision-making problems under uncertainty.


• Demonstration of an understanding of the various forms of financing and the ability to evaluate them.


• Demonstration of knowledge of the concepts of capital costs and leverage and their significance.

Qualification objectives/skills:

Upon successful completion of the module, students will have acquired the following skills:

• Be able to understand and explain the various functions of a company's finance department according to traditional and modern approaches.


• Be familiar with and able to apply the basic concepts of corporate finance.


• Be familiar with the economic fundamentals of investment theory and be able to critically evaluate them.


• Understand, explain, and apply key investment appraisal methods (payback period, net present value, terminal value, annuity, internal rate of return)


• Structure decision-making problems under uncertainty


• be familiar with different forms of financing, be able to distinguish between them, and assess their advantages and disadvantages


• be familiar with the concepts of capital costs and leverage and be able to demonstrate their significance for corporate financing.

Lecture content:

1. The traditional approach to finance

2. The modern approach to finance

3. Fundamentals of investment theory

4. Methods of investment appraisal

5. Presentation and solution of decision-making problems under uncertainty

6. Financing costs of individual types of financing

7. Capital structure and capital costs in mixed financing