Business Finance

Aim

After completion of the course, the student should on an advanced level be able to:

• identify, explain and analyze the key financial indicators of a firm’s performance and development
• identify and specify business problems, challenges and opportunities using financial information and conducting a systematic analysis of a company
• select adequate financial approaches to business problems and create action plans
• apply both strategic and operational perspectives on financial planning and investment
• recognize and analyze the complexity of managerial decision-making by taking into consideration both financial and other strategic business factors

Content

This course builds upon the idea that contemporary managerial decision-making requires knowledge of finance both as an academic discipline and as a practical toolkit. Thus, the course integrates theory and cases in order to create business situations where critical business issues require effective solutions. The following moments are included in the course:

• Financial statements, cash flows, and evaluating a firm’s performance for both strategic and operational purposes. The key financial ratios and other indicators are analysed and relevant problems and challenges are highlighted.
• The principles of financial forecasting, planning and budgeting.
• A firm’s capital structure and analyzing the different kinds of debt, shareholder value and dividend decisions and processes of working capital management.
• Investment alternatives and analyzing investment decisions at different stages of organizational growth. Estimating value of a project taking into consideration issues of risk, inflation, and interest rates.
• Financial decision-making in a wider perspective where finance is seen as part of business strategy stemming from both financial and other considerations. The challenges of strategic management in international environments are highlighted.
• Analysis of actual financial reports is done reflecting on transparency and financial practices of employees and investors.

Both theoretical and practical relevance of these topics is shown in the course.