Corse outline
“
Course unit title
Name and title of lecturer
Level of course
Semester
ECTS credits
Student’s working hours
Prerequisites
Language of instruction
Objectives of the course
Develop theoretical and
practical financial management
skills to help successfully plan,
organize, analyze and evaluate
the financial performance of
corporate.
Financial management
Prof. dr. Arvydas Paškevičius
Cycle 1
6
5
Contact hours
48
lectures 24
seminars 16
practical classes
laboratory classes
consultations 8
Independent work
82
Total 130
A student must have completed the course on Microeconomics,
Macroeconomics, Accounting in order to master the present material
Lithuanian ( if it is required - English)
Learning outcomes
Assessments methods
Ability to plan the financial
Choose a company and assess its
activities of corporations and
financial environment. The results
assess the environment .
obtained shall be presented in the
classroom.
Ability to calculate the
financial ratios of the
company
Ability to calculate and
forecast the cash flows of the
company.
Ability to assess the external
financing needed of the
company.
Ability to calculate the time
value of cash flow of the
company.
1
Calculate the financial ratios of the
selected company. The results
obtained shall be presented in the
classroom.
Calculate the cash flows of the
selected company. The results
obtained shall be presented in the
classroom.
Assess the external financing
needed of the selected company.
The results obtained shall be
presented in the classroom.
Calculate the Future Value, Present
Value, Present and Future Values of
Multiple Cash Flows; Annuities and
Perpetuities; Annual percentage rate
and Effective Annual Rate. The
results obtained shall be presented
in the classroom.
Ability to calculate the Bond
and Common Stock values
using the discounted cash flow
method.
Teaching methods
Course unit content
Calculate the Bond and Common
Stock values of selected company.
The results obtained shall be
presented in the classroom.
During the lectures students shall be presented and explained the
theoretical material. At home and during the seminars (practical
classes) by solving problems-tasks and analyzing specific cases the
students will take in the theoretical material and acquire practical
skills.
The course introduces fundamentals of financial management of a
company. The following issues are presented: Corporate Finance and
the Financial Manager; The Balance Sheet and Corporate Financial
Decisions; The Corporate Form of Business Organization; The Goal
of Financial Management; The Balance Sheet; The Income
Statement; Cash flow from Assets; Cash flow to Bondholders and
Stockholders; Cash Flow and Financial Statements; Standardized
Financial Statements; Short-term and long-term Solvency measures;
Asset management and profitability measures; Market Value and
measures and Du Pont Identity; Long-term Financial planning and
Growth; Financial Planning Models; The Percentage of Sales
Approach; External Financing and Growth; Future Value and
Compounding; Present Value and Discounting; Present and Future
Values of Multiple Cash Flows; Annuities and Perpetuities; Annual
percentage rate and Effective Annual Rate; Bonds and Bond
Valuation; Common Stock Valuation; Net Present value; The
Payback Rule; The Discounted Payback Rule; The Average
Accounting Return; The Internal Rate of Return; The Profitability
Index
Subject title
Contact hours
1. Introduction to the “Financial management of corporation“
2
2. Financial Statements and Cash Flow
4
3. Working with Financial Statement
6
4. Long-term Financial Planning and Growth
8
5. The Time Value of Money
4
6. Discounted Cash Flow Valuation
8
7. Interest Rates and Bond Valuation
8
8. Stock Valuation
8
Total. 48
Reading list (up to five sources)
Publication
year
2009
2010
Author and title of the publication s
Fundamentals of Corporate Finance, Stephen A. Ross, Randolph W.
Westerfield, Bradford D. Jordan,
Brealey R.A., Myers S., Allen F. „Principles of Corporate Finance“
2
Independent work hours
4
8
10
12
6
14
14
14
82
Publishing house
McGraw-Hill
McGrawHill
Assessment requirements
Assessment criteria
Composition of the final
accumulative grade:
The subject description
prepared by:
Approved by the Department:
Approved by the Study
Programme Committee:
Analysis and solutions of tasks and problems at seminars, attendance
of lectures and practical classes, interim tests, examination.
The grade assigned for problem solution at seminars is multiplied by
0.20.
Colloquium tests shall be taken by electronic means at the
Examination centre. Students are required to solve not less than 50%
of all tasks presented in four tests. Where the grade for the
colloquium is above 4, it is multiplied by 0.2 and shall be added to
the final result. It is obligatory to pass all 4 tests. Students who
during semester have passed all tests and have accumulated positive
assessment may be absent exam.
The final accumulative grade shall be composed of:
Problem solutions at seminars – 20 %
Grade from colloquium 1 – 20%
Grade from colloquium 2 – 20%
Grade from colloquium 3 – 20%
Grade from colloquium 4 – 20%
Prof. dr. Arvydas Paškevičius
Name, date
Chairman: signature, date
3