363-0560-00L  Financial Management

SemesterSpring Semester 2021
LecturersJ.‑P. Chardonnens
Periodicityyearly recurring course
Language of instructionEnglish

AbstractThis course introduces students to the concept and principles of financial management that are of primary concern to corporate managers, and all the consideration needed to make financial decision. It involves investment and financing decisions through the application of financial analysis.
ObjectiveBy attending this course, students will be able to:
- increase the overall value of firms and improve their profitability.
- ensure sufficient availability of funds to satisfy maturing short-term debt.
- improve the management of working capital and short-term financing.
- make capital budgeting decisions under both certainty and uncertainty.
- discuss the capital structure theory.
- understand the different sources of finance.
- describe the main motives and implications of mergers and acquisitions.
ContentThe course Financial Management follows the course Accounting for Managers. The principles of financial management are illustrated with different cases. The course is divided into six main sections:

1. The first section discusses the financial goals of the firm, value-based management, and the objectives of liquidity and profitability.

2. The second chapter explains the tools and methods of financial analysis and forecasting needed by managers in order to make appropriate investing and financing decisions.

3. The third division demonstrates the importance of the management of working capital, cash planning, current asset management, short term financing, and the cash flow statement.

4. The fourth module introduces the static and dynamic methods of capital budgeting in order to improve the profitability of the organisation and achieve the main objectives.

5. The fifth part relates to the financing of the company, the capital structure theory, the cost of capital, the different sources of equity and debt financing.

6. The last section of the course illustrates special topics of financial management, such as mezzanine finance, corporate restructuring, mergers & acquisitions, and the valuation of shares.
Prerequisites / NoticeRequirement : Good knowledge of financial accounting (Accounting for Managers)