Financial Management (5cr)

Evaluation methods and criteria

Items of Assessment:
1. Individual Assignments (90%): Each student is required to prepare 10-12 tasks that we shall study during the course (each task is numbered and given in red text in lecture slides).
All tasks should be included in the one master excel file. The text pertaining to tasks should be explained in one master word file or in the respective excel sheets as "Comments".
For each task, a student is required to give- 1. problem statement, 2. objectives, 3. theoretical concepts, 4. data collection and analysis process, 5. main findings and interpretations and 6. conclusions and implications.
2.Attendance and in class Activity / Discussion Forum activity (10%)
You will get a grade of ‘one', if you are able to demonstrate a ‘basic level’ of evidence in all the following COMPETENCES.
You will get a grade of ‘two', if you are able to demonstrate an ‘intermediate level’ of evidence in the first three (I, ii, and iii) and ‘basic level’ of evidence in the last three (iv, v, vi) COMPETENCES:
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management

Items of Assessment:
You will get a grade of ‘three, if you are able to demonstrate an ‘intermediate level’ of evidence in all the following COMPETENCES.
You will get a grade of ‘four, if you are able to demonstrate an ‘excellent level’ of evidence in the first three (I, ii, and iii) and an ‘intermediate level’ of evidence in the last three (iv, v, vi) COMPETENCES:
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management


Items of Assessment:
You will get a grade of ‘five’, if you are able to demonstrate an ‘excellent level’ of evidence in all the following COMPETENCES.
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management

Evaluation scale

0-5

Content scheduling

Time Table                                     Venue                  Topic

10.02.2026    10.15 - 12.15           R35FK14                 Course Introduction and Basics of Risk-Return         

17.02.2026    10.15 - 12.15           R35FK14                  Dynamics of Risk-Return

 03.03.2026   10.15 - 12.15           R35FK14                 Capital Asset Pricing Model (CAPM) 

10.03.2026    10.15 - 12.15           R35FK14                  Data Analysis Workshop    

17.03.2026    10.15 - 12.15           R35FK14                  Cost of Equity (CAPM, Dividend Growth Model) 

24.03.2026    10.15 - 12.15           R35FK14                  Weighted Average Cost of Capital (WACC)                          

31.03.2026    10.15 - 12.15           R35FK14                  Levered and Unlevered Cost of Equity

07.04.2026    10.15 - 12.15           R35FK14                  Capital Structure Considerations

14.04.2026    10.15 - 12.15           R35FK14                  Operating Leverage

21.04.2026    10.15 - 12.15           R35FK14                 Financial Leverage

28.04.2026    10.15 - 12.15           R35FK14              EBIT-EPS Approach to Capital Structure

05.05.2026    10.15 -12.15            R35FK14             Financial Distress and Bankruptcy Costs

12.05.2026    10.15 - 12.15           R35FK14             Revision Session 

19.05.2026    10.15 - 12.15           R35FK14             Final Day

Objective

The course aims to help you understand, explore, and analyze multiple financial aspects in the corporate sector. The emphasis is on understanding conceptual aspects, and their practical applications from the point of view of investors, and finance managers, in the field of corporate risk management, quantitative financial analysis, investment analysis, corporate finance, international finance, accounting information analysis, strategic management accounting, financial forecasting, financial institutions and markets, personal finance, etc.

You will acquire the following COMPETENCES at the end of the course:

1. Learning to learn-

You develop a critical and analytical mindset that helps you to study and review existing knowledge in the light of relevant learning resources and learning methods; incentivizes you to acquire new knowledge; and develops your intellectual capabilities to seek conclusions and draw inferences in various contexts.

To achieve this competence, you will:

– learn to formulate relevant questions and seek information,

-review relevant theoretical and empirical literature to comprehend diverse perspectives and evaluate and interpret arguments and counter-arguments,

-understand new developments in your field of study and make informed decisions based thereon.

- acquire the researcher’s mindset to problematize, explore, and understand real-life phenomena, especially in the academic track system.

Critically review, analyze, and understand the information available from academic and professional business sources.

You can identify, outline, master, analyze, and synthesize core financial concepts at both the firm level and the global level, including financial structure, fundamentals of risk and return, dynamics of wealth management and asset prices, investment appraisal, sustainable finance, and board of directors dynamics. You are encouraged to analyze the core financial concepts and to synthesize them into coherent financial information and its implications.

2. Proactive development-

You develop solutions in the light of current as well as anticipated situations and challenges in business by applying knowledge, critical reasoning, and analytical skills. You ensure that these solutions are feasible, relevant, creative, user-friendly, and sustainable, while also emphasizing active cooperation among different actors.

To achieve this competence, you will:

- apply existing knowledge and utilize relevant research methods, including digital technology in development projects,

-interpret new evidence in the light of the existing body of knowledge, make comparisons and draw inferences,

- express your intellectual contribution through scientific or professional writings,

-understand utility, creativity, viability, scalability, and sustainability of new solutions.

Apply disciplinary and interdisciplinary knowledge to analyze business challenges and global trends to propose or put into action practical business solutions based on the findings.

You can gather, analyze, and apply financial data, for example, in the context of portfolio management and capital structure, and make interpretations and draw inferences by applying diverse and interdisciplinary knowledge. You will outline and evaluate the key patterns and trends in the asset portfolios, and interpret and infer diverse financial aspects in the light of a dynamic global business environment comprising investors’ background, institutional settings, attitudes and behaviors of investors, policies, rules, regulations, technical specifications, and legal practices. You will also develop your intellectual skills concerning micro, and macro-financial policies from the multiple stakeholders’ perspectives and understand the major variables that make up the financial structure of the firms and their interactions with the corporate strategic decision-making and business operations. You will understand and underpin the factors emanating from the financial activities of the firms and global financial developments, risks, and challenges that affect business operations, strategies, and planning. By doing so, you can enhance your decision-making skills by finding solutions based on your findings, concerning financial management in the context of a complex business scenario.

3. Internationality and multiculturalism-

You work in multicultural and international environments and networks in order to develop knowledge and communication skills, as well as develop empathy and appreciation for other cultures. You communicate responsibly and effectively in English through written, verbal, non-verbal, and digital formats individually as well as a team member in diverse settings.

To achieve this competence, you will:

-be familiar with the impact of your cultural background on your actions and be able to effectively and productively function in your work community that explicitly recognizes the relevance of multiculturalism,

-demonstrate meaningful intercultural teamwork, including the roles of leadership and conflict resolution, in order to develop creative solutions carrying multicultural underpinnings,

-be able to experience group learning and share best practices in international settings,

- learn to communicate ideas and solutions effectively in the context of various subjects, multiple purposes, and a wide range of audiences both individually as well as in a group,

- initiate and engage constructive dialogues among relevant stakeholders to accomplish desired goals for multiple purposes and communicate ideas and solutions to a wide range of audiences including both individuals and groups,

-learn to be an ‘active listener’ to understand diverse perspectives, and points of view in an accurate, unbiased, and critical manner,

-learn various aspects of digital media.

Demonstrate intercultural teamwork, leadership, and conflict resolution skills.

You will be able to work, cooperate, and coordinate your classmates who are having diverse cultural backgrounds. You will enhance your teamwork skills, the spirit of ownership of responsibilities, and making distribution of tasks in an equitable manner, as well as motivate and encourage other group members and learn from each other.

Furthermore, Competence aims to enable you to

-understand the concept and principles of sustainable development in the context of business,

-recognize sustainability challenges and their consequences for businesses, local communities, and global society,

-use your accumulated knowledge and skills to create and implement sustainable solutions to solve business problems.

You develop your intellectual capabilities to seek conclusions and draw inferences in an international environment to become a responsible manager. You develop creative and insightful solutions to solve complex business problems both in the present and the future, with explicit emphasis on local and international standards of ethics, responsibility, and sustainability and implications on various stakeholders.

To achieve this COMPETENCE, you will:

-study developments in your discipline in the international learning milieu and understand various aspects of responsible business management, including global business trends and competitive landscape.

-derive and interpret new evidence and compare it with the existing body of knowledge in the global context to draw useful inferences,

- critically assess the implications of actions and decisions of the international organisations.

-understand the impact of the actions and decisions on the community, in general, and specific stakeholders, in particular.

-understand core aspects of people management in the international business environment.

4. Ethics-

You benchmark and demonstrate ethical and responsible conduct according to the well-established principles, norms, and best practices laid down by relevant national and international bodies and organisations.

To achieve this competence, you will:

-understand and apply the well-established principles of responsible conduct in research, and problem-solving,

-adhere to the principles of equity, equality, and non-discrimination,

-take responsibility for your own actions and their consequences and reflect on them in accordance with the relevant ethical principles, norms, and practices,

- develop realization of diversity and accessibility in your actions.

5. Sustainable development-

You develop an understanding, vision, and appreciation for sustainability that affect personal and professional lives, local communities, and global society at large. You study and explore linkages between multiple aspects of sustainability and business.

To achieve this competence, you will:

-understand the concept and principles of sustainable development in the context of business,

-recognize sustainability challenges and their consequences for businesses, local communities, and global society,

-use your accumulated knowledge and skills to create and implement sustainable solutions to solve business problems.

IB competence:

6. Responsible international business management-



You develop your intellectual capabilities to seek conclusions and draw inferences in an international environment to become a responsible manager. You develop creative and insightful solutions to solve complex business problems both in the present and the future, with explicit emphasis on local and international standards of ethics, responsibility, and sustainability and implications on various stakeholders.

To achieve this competence, you will:

-study developments in your discipline in the international learning milieu and understand various aspects of responsible business management, including global business trends and competitive landscape.

-derive and interpret new evidence and compare it with the existing body of knowledge in the global context to draw useful inferences,

- critically assess the implications of actions and decisions of the international organisations.

-understand the impact of the actions and decisions on the community, in general, and specific stakeholders, in particular.

-understand core aspects of people management in the international business environment.

Furthermore, you can identify, outline, master, analyze, and synthesize the core financial concepts at the firm-level as well as global level with respect to financial structure, fundamentals of risks and return, dynamics of wealth management and asset prices, investment appraisal, sustainable finance, the board of directors dynamics, etc. You are encouraged to analyze the core financial concepts and to synthesize them into coherent financial information and its implications.

You can gather, analyze, and apply financial data, for example, in the context of portfolio management and capital structure, and make interpretations and draw inferences by applying diverse and interdisciplinary knowledge. You will outline and evaluate the key patterns and trends in the asset portfolios, and interpret and infer diverse financial aspects in the light of a dynamic global business environment comprising investors’ background, institutional settings, attitudes and behaviors of investors, policies, rules, regulations, technical specifications, and legal practices. You will also develop your intellectual skills concerning micro, and macro-financial policies from the multiple stakeholders’ perspectives and understand the major variables that make up the financial structure of the firms and their interactions with the corporate strategic decision-making and business operations. You will understand and underpin the factors emanating from the financial activities of the firms and global financial developments, risks, and challenges that affect business operations, strategies, and planning. By doing so, you can enhance your decision-making skills by finding solutions based on your findings, concerning financial management in the context of a complex business scenario.

You will be able to work, cooperate, and coordinate your classmates who hail from diverse cultural backgrounds. You will enhance your teamwork skills, the spirit of ownership of responsibilities, and making distribution of tasks in an equitable manner, as well as motivate and encourage other group members and learn from each other.

Execution methods

The primary modes of delivery are face-to-face learning (lectures, workshops, presentations). The course is strictly in-classroom, and the number of unauthorized absences exceeding two can lead to cancellation of course enrollment.

Content

Corporate risk management, quantitative financial analysis, investment analysis, corporate finance, firm leverage and cost of capital, international finance, accounting information analysis, corporate valuation, investment appraisal, strategic management accounting, financial forecasting, sustainable finance, wealth management, behavioral finance, financial technology (FINTECH), financial scandals, executive remuneration financial institutions and markets etc.

Location and time

Please refer to the course schedule published in Peppi and Moodle.

Materials

-Richard A. Brealey, Stewart C. Myers and Franklin Allen, Principles of Corporate Finance, 13th Edition (2019). The McGraw-Hill.
- Stephen Ross and Randolph Westerfield and Jeffrey Jaffe and Bradford Jordan, Corporate Finance, 12th Edition (2018). The McGraw-Hill.
- Jonathan Berk and Peter DeMarzo, Corporate Finance, 5th Edition (2020). Pearson.
Lecture slides, case studies, spreadsheets, textbooks, research articles, videos, assignments, online resources etc. Please check learning platform on regular basis.

Teaching methods

In classroom teaching. Attendance is mandatory. Any unauthorized absences exceeding two can result in the cancellation of course enrollment. Lectures, seminars, and presentations will be organized for both group and individual assignments.

Exam schedules

You will receive this information when the course begins.

International connections

You will have the opportunity to collaborate with other European universities.

Student workload

The course schedule is published in Peppi and Moodle.

The workload is as follows:
Lectures:                                 40 hours

Data Analysis Lab Session:     25 Hours

Assignment Preparations:      60 Hours

Miscellaneous:                       10 Hours

Assessment criteria, satisfactory (1)

Items of Assessment:

1. Individual Assignments (90%): Each student is required to prepare 10-12 tasks that we shall study during the course (each task is numbered and given in red text in lecture slides).
All tasks should be included in the one master excel file. The text pertaining to tasks should be explained in one master word file or in the respective excel sheets as "Comments".
For each task, a student is required to give- 1. problem statement, 2. objectives, 3. theoretical concepts, 4. data collection and analysis process, 5. main findings and interpretations and 6. conclusions and implications.
2.Attendance and in class Activity / Discussion Forum activity (10%)

You will get a grade of ‘one', if you are able to demonstrate a ‘basic level’ of evidence in all the following COMPETENCES.

You will get a grade of ‘two', if you are able to demonstrate an ‘intermediate level’ of evidence in the first three (I, ii, and iii) and ‘basic level’ of evidence in the last three (iv, v, vi) COMPETENCES:
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management

Assessment criteria, good (3)

Items of Assessment:

You will get a grade of ‘three, if you are able to demonstrate an ‘intermediate level’ of evidence in all the following COMPETENCES.

You will get a grade of ‘four, if you are able to demonstrate an ‘excellent level’ of evidence in the first three (I, ii, and iii) and an ‘intermediate level’ of evidence in the last three (iv, v, vi) COMPETENCES:
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management

Assessment criteria, excellent (5)

Items of Assessment:

You will get a grade of ‘five’, if you are able to demonstrate an ‘excellent level’ of evidence in all the following COMPETENCES.
The COMPETENCES are given as below
(i) Learning to learn
(ii) Proactive development
(iii) Internationality and multiculturalism
(iv) Ethics
(v) Sustainable development
(vi) Responsible international business management

Qualifications

First year studies or Financial Accounting and Management Accounting completed

Further information

This course is a bridge between the core concepts of finance and their real-life applications.