EduXchange.EU

Basic Finance

TER2550
Business and Economics

About this course

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. Introduction to options. Cost of capital. Raising capital. Financial leverage and capital structure. Dividends. Financial planning.

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

NB! This course will take place in spring semester 2024/2025 which starts on 3rd of February and ends on 16th of June (you can find that information under Start date section). The real course start and end dates will be announced at the beginning of February at the latest.

Learning outcomes

After completing this course the student:

  • has a thorough overview of the concept of time value of money and is able to apply these tools for solving different finance problems;
  • is familiar with financial statements of a company and is able to evaluate company's financial position by applying financial ratios;
  • knows and is able to apply the basic capital budgeting techniques;
  • knows the main capital structure theories and is able to determine the company's cost of capital;
  • understands the operation of financial markets and is familiar with common financial instruments.

Examination

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

Resources

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

Activities

lectures, exercises

Additional information

  • Credits
    ECTS 6
  • Level
    Bachelor
  • Contact hours per week
    4
  • Instructors
    Karin Jõeveer
  • Mode of instruction
    Hybrid
If anything remains unclear, please check the FAQ of TalTech (Estonia).
There are currently no offerings available for students of TUM (Germany)