Financial Management and Investment Decisions

Brief description

• Basic terms of financial planning • Static investment appraisal methods (cost comparison method, profit comparison method, average return method) • Dynamic investment appraisal methods (net present value, internal rate of return, annuity etc.) • Key questions of investment (consideration of risk and taxes, investment planning, optimal useful life) • Various forms of financing • Equity financing (esp. stocks, stock market, capital market) • Internal financing (self-financing, financing through depreciation, financing through accruals etc.) • Debt financing (bank loans, bonds, trade credit etc.) • Innovative forms of financing (leasing, factoring, mezzanine financing etc.) • Cash flow statements • Financial planning and liquidity

Mode of delivery

face to face

Type

compulsory

Planned learning activities and teaching methods

Face-to-face learning (input, discussions, written individual and group activities, short presentations of solutions in class), written tests in class

Assessment methods and criteria

Continuous assessment: 30 points can be received through participation in class (mini tests) and 70 points through a written final exam.

Prerequisites and co-requisites

Financial Accounting and Financial Statement Analysis

Infos

Degree programme

European Economy and Business Management (English)

Cycle

Bachelor

ECTS Credits

3.00

Language of instruction

English

Curriculum

Full-Time

Academic year

2025

Semester

3 WS

Incoming

Learning outcome

After successful completion of this course, students can • name the various forms of financing, and outline advantages and disadvantages, • prepare a comparison to select adequate forms of financing, • evaluate the liquidity situation • select decision-relevant data for investment projects and aggregate them into meaningful reports • identify use cases for static and dynamic investment appraisal methods • apply dynamic investment appraisal methods to decide on the allocation of financial resources to investment projects and thereby • help prepare investment decisions.

Course code

1389-20-01-VZ-DE-23

Financial Management and Investment Decisions