Financial Management

Course ID: 
ECO_DE323
Semester: 
Year of Study: 
For Erasmus Students: 
No

Learning Outcomes

The aim of the course is to understand the process of management of the firm's resources, including financial decision-making, in order to maximize its value. Business and investment financing decisions, dividend decisions and investment decisions will be analyzed, with ultimate goal the maximization of the market value of the firm and its shareholders. It will present the financing decisions (capital structure of the company in terms of assets and liabilities) and dividend policy decisions. It will also present the context of the markets for business financing decisions (national and international) as well as the regulatory framework and corporate social responsibility rules.

By the end of this course the student will be able to

• Recognize agency problems in a modern private enterprise and propose solutions based on corporate governance systems.
• Use cash flow discounting tools in asset pricing.
• Calculate the required return of the enterprise under uncertainty.
• Evaluate investment projects.
• Choose the financial structure of the business that maximizes its value.

By the end of this course the student will, furthermore, have developed the following skills (general abilities):

1. Calculate the pricing of assets.
2. Estimate the weighted average cost of capital (WACC).
3. Evaluate risk and return of investment programs under uncertainty.
4. Calculate net present value (NPV), internal rate of return (IRR, MIRR), payback period (PBP).
5. Choose the best capital structure.

Course Contents

  1. Business Theory and Principles of Corporate Governance.
  2. Time value of money.
  3. Stock and bond valuation.
  4. Capital costs.
  5. Capital investment budget.
  6. Theory of capital structure.
  7. Dividend policy.
  8. Management of international risks.

Teaching Activities

Lectures (2 hours per week) and Excersises (1 hour per week)

Teaching Organization

Δραστηριότητα

Φόρτος Εργασίας Εξαμήνου

Lectures

26

Exercises

 13

Hours for private study of the student.

111

Total number of hours for the Course

(25 hours of work-load per ECTS credit)

150 hours

Assessment

Written final exam including:
- Multiple choice questions.
- Solving problems using quantitative data.
- Comparative evaluation of theory data.

Use of ICT

Powerpoint, eclass.

Course Info

Teaching Hours: 
3 hours per week
ECTS Credits: 
6.00
Teaching Credits: 
3.00
Weight: 
1.50
Language: 
Teaching Method: 

Current Tutors

Reading List

Reading Recommendations: 
Brealey R.A., Myers S.C. and Allen F. (2013) «Αρχές Χρηματοοικονομικής των Επιχειρήσεων», Εκδόσεις Utopia.
Βασιλείου Δ., Ηρειώτης Ν. (2010) «Χρηματοοικονομική Διοίκηση, Θεωρία και Πρακτική» Εκδόσεις ROSILI.
Damodaran A. (2013). «Εφαρμοσμένη Χρηματοοικονομική για επιχειρήσεις» Εκδόσεις Broken Hill Publishers.