EM054M21A1

Semester
A
Discipline
Finance
Contact hours
27 H
Number of spots
45
Open to visitors
Yes
Language
Coordinator
Christine SERVEY


Pedagogical contribution of the course to the program

No educational contribution associated with this course for this program.

Description

The course provides an overview of the key concepts used to conduct a financial and stock market analysis. The introduction points out the growing importance of reliable financial statements in a globalization context. The first part covers the financial accounts. The second part covers the most frequently used measures and techniques to conduct a financial accounts'analysis. In this section, particular attention is paid to value creation for shareholders. The last part covers the tools and techniques used to conduct a stock market analysis. Oral interaction in class will be facilitated by the numerous quiz which will be answered.

Teaching methods

Face-to-face

- Lectures
- Tutorials
- E-learning

In group

No items in this list have been checked.

Interaction

No items in this list have been checked.

Others

- Internships

Learning objectives

Cognitive domain

Upon completion of this course, students should be able to
  • - (level 4) break down the accounts analysis following 4 major steps (margin analysis, efficiency analysis, financing, profitability and risk analysis)
  • - (level 5) determine key financial analysis and stock market analysis indicators
  • - (level 5) interpret the accounting ratios and stock market indicators to point out the strengths and weaknesses of a financial situation
  • - (level 5) rank financial indicators between accounting and economic indicators
  • - (level 5) interpret the major financial documents (income statement, balance sheet and cash flow statement), and highlight their respective interdependencies.
  • - (level 6) combine risk measures (liquidity ratio, gearing ratio) to point out certain areas of risk such as high financial leverage and distinguish between high returns driven by risk and true value creation

Affective domain

Upon completion of this course, students should be able to
  • - (level 5) exemplify the growing importance of effective accounting systems and reliable financial documents in the context of an accelerated globalization.

Outline

I General introduction II Financial accounts 1. Accounting: A crucial information source for decision making 2. Profit and loss statement 3. Balance sheet 4. Cash flow statement 5. Statement of changes in equity 6. Relationships between financial statements III Financial accounts'analysis 1. From financial accounts to financial analysis 2. Profitability analysis 3. Efficiency analysis 4. Value creation and performance measurement 5. Risk analysis and financial leverage 6. How to conduct a financial analysis? IV Stock market analysis 1. Key financial concepts for shares 2. Market multiples 3. How to conduct a stock market analysis? V General conclusion

No prerequisite has been provided

Knowledge in / Key concepts to master

Basic knowledge in - accounting - corporate finance
- basic knowledge of financial statements - Time value of money concepts (NPV, Future value)

Teaching material

Mandatory tools for the course

- Computer
- Calculator
- Reference manuals

Documents in all formats

- Photocopies
- Worksheets

Moodle platform

- Upload of class documents
- Assessments
- Coaching/mentoring

Software

No items in this list have been checked.

Additional electronic platforms

No items in this list have been checked.

Recommended reading


CORPORATE FINANCE: THEORY AND PRACTICE (Paperback) by Pascal Quiry (Author), Maurizio Dallocchio (Author), Yann le Fur (Author), Antonio Salvi (Author) Publisher: John Wiley


VERNIMMEN newsletter:http://www.vernimmen.com/html/letter/index.php lettre VERNIMMEN: http://www.vernimmen.net/html/lettre/index.php Further references to academic litterature can be found at the end of every chapter of the VERNIMMEN textbook

EM Research: Be sure to mobilize at least one resource

Textbooks, case studies, translated material, etc. can be entered
No reading material has been provided.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Other (date, pop quiz, etc.) : specified on the moodle page
Written (33 Min.) / Individual / English / Weight : 5 %
Details : Students will have to complete 3 quizzes on the moodle page of the class corresponding to each of the three parts to the course. Each quiz will be open for one day only.There will be one trial only for each of the three quizzes, questions will be randomly picked among the questions appearing in the on line quizzes
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE
Intermediate assessment / continuous assessment 2Other (date, pop quiz, etc.) : specified in class
Written (45 Min.) / Individual / English / Weight : 25 %
Details : mid term exam on financial statements
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE
Final evaluationExam week
Written / Individual / English / Weight : 70 %
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE
No assessment methods have been attributed to this course yet.