Veidlapa Nr. M-3 (8)
Study Course Description
Fundamentals of Finance
Course Code
SZF_084
Branch of Science
Economics and Business; Finances and Loan
ECTS
5.00
Target Audience
Marketing and Advertising
LQF
Level 6
Study Type And Form
Full-Time; Part-Time
Study Course Implementer
Course Supervisor
Anželika Berķe-Berga
Structure Unit Manager
Ieva Puzo
Structural Unit
Faculty of Social Sciences
Contacts
Dzirciema street 16, Rīga, szf@rsu.lv
About Study Course
Objective
To develop students’ understanding of corporate finance, to provide insight into financial analysis within a company, cash flow assessment, financial reporting as well as financial planning.
Preliminary Knowledge
Microeconomics, Macroeconomics, Basics of Accounting, Mathematics, English.
Learning Outcomes
Knowledge
1.During the course, students will be able to apply the knowledge about financial reports and evaluation, planning both personal and company budgets, working in private business, as well as in the public sector.
Skills
1.Upon successful completion of the course, students will be able to comprehend financial statement data as well as make the necessary calculations to assess the financial position of the company. They will be able to perform simple cash flow forecasting and discounting using Excel.
Competences
1.Students will be able to explain the company’s profitability, liquidity, activity, capital and efficiency indicators, calculate cash flow values, perform calculations related to interest rate calculations, as well as analyse the company’s financial statements. Students will be able to evaluate investment projects.
Assessment
Individual work
|
Title
|
% from total grade
|
Grade
|
|---|---|---|
|
1.
Individual work |
-
|
-
|
|
During the course, students must become acquainted with the nature of company finances, indicators, budgeting, discounting, basic conditions for compiling cash flow.
In order to evaluate the quality of the study course as a whole, the student must fill out the study course evaluation questionnaire on the Student Portal.
|
||
Examination
|
Title
|
% from total grade
|
Grade
|
|---|---|---|
|
1.
Examination |
-
|
-
|
|
Assessment of learning outcomes will be done through individual calculations, group work, developing a project based on practical financial analysis, presenting and commenting on the project and group work results. At the end of the course, students write an examination paper.
1. Participation in lectures – 5%
2. Participation and quality of work in seminars – 20%
3. Homeworks and literature tests – 20%
4. Independent work (a project) – 20%
5. Examination grade – 35%
|
||
Study Course Theme Plan
FULL-TIME
Part 1
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Introduction. Business functioning environment and basic principles of operation. Budget planning. The value of money over time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
NPV, IRR. Cash flow, methods for evaluation thereof. Annuity.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Changes in the value of money over time. Evaluation of cash flow with variable elements. Annuity evaluation. Tasks.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Net present value. Internal rate of return – creation of tables in Excel, formulas (NPV, IRR), creation of discounted cash flow charts.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Analysis of financial statements. Sources of company financing. Company capital, its structure. Asset financing. Fixed assets. Current assets.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Profit and loss statement. Company profit and profitability. Cash flow, evaluation thereof.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company reports, their planning calculations. Data processing in Excel software, calculation of report positions, forecasting.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company financial analysis. Groups of financial indicators. Profitability and activity indicators.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Assessment of the financial position of a company. Liquidity, capital and investor indicators. DuPont analysis. WACC rate.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company financial analysis. Groups of financial indicators. Profitability and activity indicators. Horizontal and vertical analysis of reports. Creation of formulas using Excel; calculation of the proportions of horizontal and vertical analysis.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Budgeting. Discounted cash flow for investment projects.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Evaluation of project alternatives.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
WACC rate. Budgeting. Discounted cash flow for investment projects. Cash flow planning – creation of tables and formulas using Excel; cash flow compilation, discounting, NPV value calculation. Projekta alternatīvu novērtēšana.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Project task result presentations in groups.
|
Total ECTS (Creditpoints):
5.00
Contact hours:
28 Academic Hours
Final Examination:
Exam (Written)
PART-TIME
Part 1
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Introduction. Business functioning environment and basic principles of operation. Budget planning. The value of money over time. Current value, future value.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
NPV, IRR. Cash flow, methods for evaluation thereof. Annuity.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Changes in the value of money over time. Evaluation of cash flow with variable elements. Annuity evaluation. Tasks.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Net present value. Internal rate of return – creation of tables in Excel, formulas (NPV, IRR), creation of discounted cash flow charts.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Analysis of financial statements. Sources of company financing. Company capital, its structure. Asset financing. Fixed assets. Current assets.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Profit and loss statement. Company profit and profitability. Cash flow, evaluation thereof.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company reports, their planning calculations. Data processing in Excel software, calculation of report positions, forecasting.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company financial analysis. Groups of financial indicators. Profitability and activity indicators.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Assessment of the financial position of a company. Liquidity, capital and investor indicators. DuPont analysis. WACC rate.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Company financial analysis. Groups of financial indicators. Profitability and activity indicators. Horizontal and vertical analysis of reports. Creation of formulas using Excel; calculation of the proportions of horizontal and vertical analysis.
|
-
Lecture
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Evaluation of project alternatives.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
WACC rate. Budgeting. Discounted cash flow for investment projects. Cash flow planning – creation of tables and formulas using Excel; cash flow compilation, discounting, NPV value calculation. Projekta alternatīvu novērtēšana.
|
-
Class/Seminar
|
Modality
|
Location
|
Contact hours
|
|---|---|---|
|
On site
|
Auditorium
|
2
|
Topics
|
Project task result presentations in groups.
|
Total ECTS (Creditpoints):
5.00
Contact hours:
26 Academic Hours
Final Examination:
Exam (Written)
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.
Additional Reading
1.
J. B. Berk, P. DeMarzo, J. Harford. Fundamentals of Corporate Finance. 3rd Ed., Pearson Education, 2015, 756 p.
2.
R. A. Brealey, S. Myers, A. J. Marcus. Fundamentals of Corporate Finance. 10th Ed., McGraw Hill, 2019, 728 p.
3.
Schoenmaker D., Schramade W. Principles of Sustainable Finance. 2019, 394 p.
Other Information Sources
1.
Rīgas biržas mājaslapa.
2.
M. Rurāne. Finanšu menedžments. Rīga, RISEBA, 2006. - 384 lpp.
3.
M. Rurāne. Uzņēmuma finanses. Jumava, 2007, 266 lpp.
4.
K. Subatnieks. Komercsabiedrības naudas plūsma. Drukātava, 2008, 99 lpp.
5.
L. J. Gitman. Principles of Managerial Finance. 12th Ed., Pearson International Ed., 2007, 848 p.