Financial economics

COURSE DESCRIPTION

After completion of the course students will have fundamental knowledge in financial analysis and it’s applications to business administration, including capital budgeting, project evaluation, corporate investment and financing decisions, and basic security analysis and investment management.

CONTENT

1. Economic processes descriptions – macroeconomics, microeconomics, econometrics. Economic growth, economic equilibrium, economic cycles
2. Financial economics and financial information. State finances. Company finances. Financial statements – balance sheet, profit-loss account, cash flow
3. Three levels of company finances analysis – operational level, financial level, market value level
4. Operational level ratios – activity, profits, returns
5. Financial level ratios – liquidity, capital structure, leverage
6. Market level ratios – time value of money, cash flow present value, terminal value, total present value, shareholder value added, economic value added
7. Financial instruments. Financial markets. Risk and return. Market efficiency
8. Economic forecasting. Technical analysis. Fundamental analysis. Investment decisions