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Financial Management
Study Course Description
Course Description Statuss:Approved
Course Description Version:7.00
Study Course Accepted:02.02.2024 12:30:02
| Study Course Information | |||||||||
| Course Code: | SBUEK_091 | LQF level: | Level 7 | ||||||
| Credit Points: | 4.00 | ECTS: | 6.00 | ||||||
| Branch of Science: | Management; Business Management | Target Audience: | Business Management | ||||||
| Study Course Supervisor | |||||||||
| Course Supervisor: | Inna Dovladbekova | ||||||||
| Study Course Implementer | |||||||||
| Structural Unit: | Faculty of Social Sciences | ||||||||
| The Head of Structural Unit: | |||||||||
| Contacts: | Dzirciema street 16, Rīga, szf rsu[pnkts]lv | ||||||||
| Study Course Planning | |||||||||
| Full-Time - Semester No.1 | |||||||||
| Lectures (count) | 8 | Lecture Length (academic hours) | 2 | Total Contact Hours of Lectures | 16 | ||||
| Classes (count) | 12 | Class Length (academic hours) | 2 | Total Contact Hours of Classes | 24 | ||||
| Total Contact Hours | 40 | ||||||||
| Part-Time - Semester No.1 | |||||||||
| Lectures (count) | 6 | Lecture Length (academic hours) | 2 | Total Contact Hours of Lectures | 12 | ||||
| Classes (count) | 6 | Class Length (academic hours) | 2 | Total Contact Hours of Classes | 12 | ||||
| Total Contact Hours | 24 | ||||||||
| Study course description | |||||||||
| Preliminary Knowledge: | The course requires students to have preliminary knowledge of economics, accounting, and finance. | ||||||||
| Objective: | The aim of the course is to provide students with theoretical and practical knowledge of the methods and forms of financial management of international business, the decision making process in the field of financial management and the impact of these decisions on company financing, asset management, investments, value creation, and profitability. The course consists of theoretical and practical parts. The theoretical part will deal with theoretical aspects of financial management: asset valuation, financial analysis and planning tools, working capital and investment management, medium- and long-term financing, company value, dividend policy, etc. The practical part involves solving tasks and analysing specific situations. | ||||||||
| Topic Layout (Full-Time) | |||||||||
| No. | Topic | Type of Implementation | Number | Venue | |||||
| 1 | Development of financial management theory and its role in entrepreneurship, the legal, tax and financial environment of entrepreneurship. Business tax environment in Latvia. Tax planning in entrepreneurship. | Lectures | 2.00 | auditorium | |||||
| Classes | 0.00 | auditorium | |||||||
| 2 | Company financial statements. Financial planning. Financial analysis and planning tools. | Lectures | 2.00 | auditorium | |||||
| Classes | 3.00 | auditorium | |||||||
| 3 | Valuation of assets: relationship between the current value and future value, periodic payments (annuity). | Lectures | 0.00 | auditorium | |||||
| Classes | 3.00 | auditorium | |||||||
| 4 | Valuation of long-term securities. Bonds as a financial management tool and bond valuation. Stocks as a financial management tool and stock valuation. | Lectures | 2.00 | auditorium | |||||
| Classes | 2.00 | auditorium | |||||||
| 5 | Investment management, long-term investment planning methodology. | Lectures | 1.00 | auditorium | |||||
| Classes | 1.00 | auditorium | |||||||
| 6 | Company financing sources. Internal and external funding sources. Long-term and short-term financing. Capital cost and structure. CAPM. Operational and financial leverage. | Lectures | 1.00 | auditorium | |||||
| Classes | 2.00 | auditorium | |||||||
| 7 | Corporate restructuring. Merger and acquisition processes. | Lectures | 0.00 | auditorium | |||||
| Classes | 1.00 | auditorium | |||||||
| Topic Layout (Part-Time) | |||||||||
| No. | Topic | Type of Implementation | Number | Venue | |||||
| 1 | Development of financial management theory and its role in entrepreneurship, the legal, tax and financial environment of entrepreneurship. Business tax environment in Latvia. Tax planning in entrepreneurship. | Lectures | 1.00 | auditorium | |||||
| Classes | 0.00 | auditorium | |||||||
| 2 | Company financial statements. Financial planning. Financial analysis and planning tools. | Lectures | 2.00 | auditorium | |||||
| Classes | 1.50 | auditorium | |||||||
| 3 | Valuation of assets: relationship between the current value and future value, periodic payments (annuity). | Lectures | 0.00 | auditorium | |||||
| Classes | 1.50 | auditorium | |||||||
| 4 | Valuation of long-term securities. Bonds as a financial management tool and bond valuation. Stocks as a financial management tool and stock valuation. | Lectures | 2.00 | auditorium | |||||
| Classes | 1.00 | auditorium | |||||||
| 5 | Investment management, long-term investment planning methodology. | Lectures | 0.50 | auditorium | |||||
| Classes | 0.50 | auditorium | |||||||
| 6 | Company financing sources. Internal and external funding sources. Long-term and short-term financing. Capital cost and structure. CAPM. Operational and financial leverage. | Lectures | 0.50 | auditorium | |||||
| Classes | 1.00 | auditorium | |||||||
| 7 | Corporate restructuring. Merger and acquisition processes. | Lectures | 0.00 | auditorium | |||||
| Classes | 0.50 | auditorium | |||||||
| Assessment | |||||||||
| Unaided Work: | Individual and group work during seminars, completing homework, and case studies. In order to evaluate the quality of the study course as a whole, the student must fill out the study course evaluation questionnaire on the Student Portal. | ||||||||
| Assessment Criteria: | Accumulated grade: attendance at lectures (5%), participation in practical classes (activity and quality of answers, exercises) (30%), performance of homeworks (25%), exam (40%). | ||||||||
| Final Examination (Full-Time): | Exam (Written) | ||||||||
| Final Examination (Part-Time): | Exam (Written) | ||||||||
| Learning Outcomes | |||||||||
| Knowledge: | Recognising the theoretical guidelines of financial management science, identifying development tendencies thereof in today’s international environment. Defining the basic principles and methods of sustainable financial management of enterprises, explaining the necessity of using different financial instruments in entrepreneurship, describing the methods of financial analysis, planning, and forecasting. | ||||||||
| Skills: | Applying theoretical knowledge and using the acquired skills in practical activities to analyse, identify and solve practical financial management problems, as well as make informed financial management decisions appropriate to the situation. Assessing the financial environment of the business, applying methods of financial analysis to evaluate the operations and development of the company, selecting appropriate sources of financing for the company, planning long-term investments and optimising capital structure and profit. Substantiating and offering advanced solutions in financial management of the company, using methods of scientific and practical analysis. | ||||||||
| Competencies: | Based on the acquired theoretical and practical knowledge, students perform financial analysis, planning and management functions in the company, formulate financial management problems and offer substantiated solutions, integrate financial management issues in the overall company strategy. Students independently select and analyse information on financial management issues at the company, on industry and international level. | ||||||||
| Bibliography | |||||||||
| No. | Reference | ||||||||
| Required Reading | |||||||||
| 1 | Richard A. Brealey, Stewart C. Myers, Alan J. Marcus. Fundamentals of Corporate Finance. McGraw Hill, 10th ed., 2020, 728 P | ||||||||
| 2 | Richard A. Brealey, Stewart C. Myers, Franklin Allen. Principles of Corporate Finance. McGraw Hill, 13th ed., 2020, 918 P. | ||||||||
| 3 | Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan. Essentials of Corporate Finance. McGraw Hill, 10th ed., 2020 | ||||||||
| Additional Reading | |||||||||
| 1 | Stanley Foster Reed, Alexandra Lajoux, and H. Peter Nesvold. The Art of M&A: A Merger Acquisition Buyout Guide. McGraw-Hill/Irwin, 4th ed., 2007, 1049 P. | ||||||||
| 2 | Application of Generally Accepted Accounting Principles. John Wiley&Sons, 2008, 1276 P. | ||||||||
| 3 | Vladimirs Kozlovs. Investīciju projektu ekonomiskais novērtējums. Rīga: Latvijas hipotēku un zemes banka. 2005, 139 lpp. | ||||||||
| 4 | Marita Rurāne. Finanšu menedžments. Rīga: RSEBAA, 2006, 383 lpp. | ||||||||
| 5 | Sociālais kapitāls un darbinieku finansiālā līdzdalība uzņēmuma konkurētspējas un inovāciju veicināšanā. I.Dovladbekovas un Ē.Šumilo redakcija, RSU, 2018. | ||||||||
| 6 | James C. Van Horne, John M. Wachowicz, Jr. Fundamentals of Financial Management. Prentice Hall, 13th ed., 2015, 719 P. | ||||||||
| 7 | Valērijs Praude. Finanšu instrumenti 1 (Ieguldījumi, darījumi, analīze). Rīga: Burtene, 2009, 446 lpp. | ||||||||
| 8 | Valērijs Praude. Finanšu instrumenti 2 (Ieguldījumi, darījumi, analīze). Rīga: Burtene, 2010, 487 lpp. | ||||||||
| Other Information Sources | |||||||||
| 1 | Starptautiskie dati par kapitāla un parādu cenu | ||||||||
| 2 | Uzņēmuma izvērstā analīze. LURSOFT. | ||||||||
| 3 | Capital Finance International: CFI.co | ||||||||
| 4 | CFA Institute Financial Analysts Journal. | ||||||||
| 5 | LURSOFT datu bāzes. | ||||||||
| 6 | Nasdaq biržas uzņēmumu finanšu pārskati. | ||||||||
| 7 | Annual Report on Taxation 2023 | ||||||||
| 8 | Taxation Trends in the European Union. Data for the EU Member States, Iceland and Norway, 2022 Edition | ||||||||
| 9 | Financial markets and interest rates | ||||||||
