Basic Finance

Introduction to Finance. Financial Statements, Taxes, and Cash flow. Working with Financial Statements. Introduction to Valuation (The Time Value of Money). Discounted Cash Flow Valuation. Interest Rates and Bond Valuation. Stock Valuation. Ratio Analysis. Capital budgeting. Some Lessons from Capital Market History. Return, Risk and the Security Market Line. Cost of capital. Raising capital. Financial leverage and capital structure. Dividends.

Introductory video for EuroTeQ students: https://www.youtube.com/watch?v=4ihRyoxIf0s

NB! This course will take place in autumn semester 2025/2026 which starts on 1st of September and ends on 25th of January (you can find that information under Start date section). TalTech's timetables for Autumn semester 2025 will be published at the end of June via tunniplaan.taltech.ee. Switch the page to English and use "Search" and "Open detailed search" to find your course. NB! Some courses are taught by several lecturers during the same semester. Make sure that the course name and lecturer/teacher infromation of your course match with the information given in the Course Catalogue.

After completing this course the student:

• uses financial statements and financial ratios in financial analyses;
• has thorough overview of the concept of time value of money and applies it in solving financial questions;
• applies different investment evaluation methods;
• has thorough overview of capital markets and portfolio theory;
• has thorough overview of the capital structure theories and evaluates cost of capital.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

None.

• Ross, Westerfield, and Jordan. Corporate Finance Fundamentals. 10th Edition, McGraw-Hill.

lectures, exercises