6926476266

E\amination:	Written test
Language:	English
Prerequisites:	basie accounting, fmancial mathematics
Course content:	Understanding of principles of finance theory is indispensable to develop and implement effective fmancial strategies. Lectures take students through the basie concepts, including background on the economic and fmancial environment, fmancial statement analysis, risk analysis, and the valuation process. With this portion of knowledge one can understand how specific techniąues and decision rules can be used in the process of value maximization of the company. Lectures will cover following subjects: 1    Basic Concepts in Finance Objective and Scope of Finance. Agency Problems. Capital Market and Portfolio Theories. Analysis of Financial Statements. 2    Capital Budgeting Decisions The Capital Budgeting Process. Cash Flows Analysis. Capital Budgeting without Capital Constraints: NPV, IRR, Payback, and Accounting Ratę of Return. Capital Budgeting Under Capital Rationing: Profitability Index, Mathematical Programming. Risk-Adjusted NPV Model: Risk-Adjusted Discount Ratę and Certainty Equivalent Approaches. Risk Analysis Techniąues: Sensitivity Analysis, Simulation, and Decision Trees. Impact of Inflation. Dependence of Cash Flows over Time. Correlation among Investment Projects. Agency Problem. 3    Cost of Capital Weighted Average Cost of Capital. Marginal Cost of Capital. Application of the CAPM. 4    Capital Structure Decisions Short to Medium-Term Debt Financing. Long-Term Debt Financing. Eąuity Capital. Quasi-Equity Capital. Agency Problem of External Financing. Financial Leverage and Financial Risk. Capital Structure Theories: Traditional Approaches and The Modigliani-Miller Theory. Impact of Market Imperfections: Taxes and Agency Problem. Optimal Capital Structure. 5    Dividend Policies Dividend Decisions and Shareholder Wealth. Modigliani-Miller Irrelevance Argument. Taxes, Clientele Effects, and Announcement Effects. Factors Affecting Dividend Policies. Types Of Dividend Policies.
Leaming outcomcs:	Students will know and understand basie concepts in finance, they will be able to solve problems and case studies in regards to Capital budgeting decisions, as well as Capital structure decisions.
Contact person:	dr Tomasz Słoński, tel. [phone], e-mail: [e-mail]
Literaturę:	Ross, S.A., Westerfield, R.W. and Jordan, B.D., Fundamentals of