|Module bestaat uit de onderwijseenheden|
202000411 Accounting and Finance|
202000412 Option Pricing
202000413 Project Finance for Engineers
202000414 Professional and Academic Development M5 (IEM only)
202001076 IT & Law (BIT only)
1. Valuation: understanding of the main principles of financial valuation, and ability to apply the valuation techniques in determining the value of bond, shares, firms as well as simple financial options.
2. Accounting / performance: interpret real world financial figures related to (external) financial accounting and (internal) management accounting.
3. Decisions / management: understanding some basic principles underlying financial and investment decisions, and the ability to perform corresponding basic applications.
4. Financial markets: elementary knowledge of financial markets and their role in corporate finance
5. Methodology: knowledge and application of information elicitation techniques and multi-criteria analysis
In this module we give an introduction to the field of Finance. Concepts and tools are addressed, ranging from Accounting to Corporate Finance and a bit of Option Pricing. The level is tuned to second or third year bachelor students from a technical program, with some background in statistics and probability, including at least some familiarity with the concepts of variance, standard deviation, correlation, normal distribution, and statistical significance. Some financial pre-knowledge is desirable, for instance as treated in the financial week of the first module IEM/BIT.
We address questions like: what are costs, revenues, expenses, cash flows, and profits? How to keep track of the financial status of a company, and how to manage it? Can we express performance in financial terms? How to assess the value of an investment plan? How does risk affect value? Is the ultimate goal of a company to maximize shareholder’s value? What should be in a company’s annual report? How to finance my business? What do the financial markets offer companies in this respect? Do they exist to serve business, or is it the other way around? How are markets regulated? Why do financial options and derivatives exist?
There is a central role for a project in this module. The context will be provided by the annual reports of some companies that will serve as leading examples throughout the module. In the first weeks, emphasis is on connecting theory to the project context. In the second part of the module the project is leading – you will deepen your knowledge, and learn to apply concepts and tools in a case context.