Veidlapa Nr. M-3 (8)
Study Course Description
Fundamentals of Finance
Course Code
LSPA_509
Branch of Science
Economics and Business
ECTS
5.00
Target Audience
Business Management; Management Science; Sports Trainer
LQF
Level 6
Study Type And Form
Full-Time
Study Course Implementer
Course Supervisor
Anželika Berķe-Berga
Structure Unit Manager
Diāna Laipniece
Structural Unit
Latvian Academy of Sport Education (LASE)
Contacts
LSPA, Brīvības gatve 333, Riga, LV-1006
About Study Course
Objective
Develop students’ understanding of corporate finance, provide insights into financial analysis within the company, cash flow assessment, financial statements and financial planning.
Preliminary Knowledge
Fundamentals of Economics.
Learning Outcomes
Knowledge
1.Students will be able to apply the knowledge of finance acquired during the course by planning both personal and company budgets, working in the private business as well as in the public sector.
Skills
1.By successfully completing the study course, students will be able to receive financial reporting data, as well as make the necessary calculations for assessing the financial situation of the company.
2.Will be able to do simple cash flow forecasting and discounting, create financial calculations for a business plan using Excel.
Competences
1.Students will be able to explain the company’s profitability, liquidity, activity, capital and productivity metrics, calculate cash flow values, perform calculations related to calculating interest rates, and analyze the company’s financial statements.
2.Students will be able to evaluate investment projects.
Assessment
Individual work
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Title
|
% from total grade
|
Grade
|
|---|---|---|
|
1.
Individual work |
-
|
Test
|
|
During the course, students should familiarize themselves with the financial nature, indicators, budgeting, as well as discounting of a freely chosen company, basic conditions for drawing up cash flow. In order to evaluate the quality of the study course as a whole, the student must complete the study course evaluation questionnaire on the student portal. |
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Examination
|
Title
|
% from total grade
|
Grade
|
|---|---|---|
|
1.
Examination |
-
|
10 points
|
|
Assessment of learning outcomes achievements will take place by performing individual calculations, group work, developing a project based on financial analysis of a practical nature, presenting and commenting on the results of project and group work. At the end of the course, students write exam work. 1. Participation in lectures (attendance) – 10% 2. Participation and quality of work in seminars – 20% 3. Permanent work (project work) – 30% 5. Exam grade - 40% |
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Study Course Theme Plan
FULL-TIME
Part 1
-
Lecture
|
Modality
|
Location
|
Contact hours
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|---|---|---|
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Off site
|
E-Studies platform
|
2
|
Topics
|
Introduction. The operating environment and key principles of the business. Budgeting. Value of money in time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Introduction. The operating environment and key principles of the business. Budgeting. Value of money in time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
NPV, IRR. Cash flow, its valuation methods. Annuity.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
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|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
NPV, IRR. Cash flow, its valuation methods. Annuity.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
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|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
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Changes in the value of money over time. Cash flow scoring with variable elements. Annuity assessment. Tasks.
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-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Net present value. Internal rate of return – creating tables using Excel, formulae (NPV, IRR), discounted cash flow schedules.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Net present value. Internal rate of return – creating tables using Excel, formulae (NPV, IRR), discounted cash flow schedules.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
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Analysis of financial statements. Sources of financing for the company. The company’s capital, its structure. Financing of assets. Fixed assets. Current assets.
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-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Analysis of financial statements. Sources of financing for the company. The company’s capital, its structure. Financing of assets. Fixed assets. Current assets.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
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Profit & Loss statement. Profit and profitability of the company. Cash flow, its valuation.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
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|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Company reports, their planning calculations. Processing data using Excel, calculating reporting positions, developing a forecast.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Company reports, their planning calculations. Processing data using Excel, calculating reporting positions, developing a forecast.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of the financial situation of the undertaking. Liquidity, capital and investor performance. “Du Pont” analysis. WACC rate.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
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|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of the financial situation of the undertaking. Liquidity, capital and investor performance. “Du Pont” analysis. WACC rate.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators. Horizontal and vertical analysis of reports. Create formulas in an Excel environment; calculate the proportions of horizontal and vertical analysis.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Financial analysis of the company. Financial indicator groups. Profitability and activity indicators. Horizontal and vertical analysis of reports. Create formulas in an Excel environment; calculate the proportions of horizontal and vertical analysis.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Budgets. Discounted cash flow for investment projects.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
Off site
|
E-Studies platform
|
2
|
Topics
|
Evaluation of project alternatives.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
WACC rate. Budgets. Discounted cash flow for investment projects. Cash flow planning – creating tables and formulas using Excel; drawing up, discounting, calculating an NPV value.
|
-
Test
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Study room
|
2
|
Topics
|
Presentation of project task results
|
Total ECTS (Creditpoints):
5.00
Contact hours:
40 Academic Hours
Final Examination:
Exam (Oral)
Bibliography
Required Reading
1.
Brealey A. B., Myers S. C., Allen F. Principles of Corporate Finance. 14th Ed., 2023, 986 p.
2.
Brealey R. A., Myers S. C., Marcus A. J. Fundamentals of Corporate Finance. 11th Ed., 2022, 726 p.
3.
Ross S. A., Westerfield R. W., Jordan B. D. Essentials of Corporate Finance. 11th Ed., 2023, 656 p.