Banking and Finance

Description

The course aims at contributing to the following learning results. The student 2.a understands basic theories-notions and concepts of each management domain including financial, operational, commercial and organizational activities, and applies this to solving (business)economic questions. 2.i masters basic notions of banking and finance/insurance, as well as the characteristics and functioning of the most important financial products and markets. 2.j interprets, using the principals of time value of money, information from financial reporting and new coverage in order to solve financial problems 3.a detects the influence of regional, national and international environmental factors on business management and assesses the complexity of the international business environment when composing a business strategy. 8.g shows interest for societal activity and builds a broad foundation of knowledge on societal issues. 11.g is familiar with relevant ICT-applications and applies this knowledge and skills when solving (business)economic questions 12.a evaluates the consequences of corporate activity for divers stakeholders in particular and society in general. More information Financial Mathematics This part of the course enables students to: • Apply basic techniques of time value of money (interest, and annuity calculations) and valuation (net present value, internal rate of return) on financial questions. • Interpret and integrate the mathematical background of these basic techniques in the valuation of financial instruments like (stocks, obligations, investment projects,…) • Apply basic techniques of time value of money in spreadsheet applications like Excel. In particular he/she is able to: • Calculate present and future value of financial time series in order to solve financial problems like debt restructuring, and complex financial products • Assess the value of different forms of fixed income securities and analyze the impact of duration and interest risk on this value. • Assess the value of stocks using different valuation models and analyze the impact of dividend policy, growth, risk on this value. • Applying investment criteria on complex investment problems • Describe the function and the importance of financial management within corporations • Construct a work schedule and structure and process the course material independently. By the end of this part of the course, the student is able to work in an organized manner with a focus on problem solving. In particular, he/she will have mastered the following competences: • The student is familiar with the financial methods within the domain of applied economics and is able to apply these methods. In particular, he/she is able to analyze financial concepts graphically as well as analytically (2.a, 2.j). • The student has basic knowledge of financial analysis tools like time value of money. He/she is able to use these tools in solving financial problems. (2.j) • The student is able to reflect critically on a financial issue. (3a, 12.a) • The student is able to work independently • The student has mastered a financial methodology with which he/she can process new insights and recognize problems with the aim of solving them. • The student is able to analyze a problem and propose a solution using domain specific methodology and insights. (2a, 2i, 2j) • The student has a working knowledge of spreadsheet applications like Excel in solving financial problems (11.g) Financial Markets This part of the course starts with an introduction on the role of financial markets and their interconnections through monetary policy and the system of banking(insurance) system. Then we will look at some important investment products such as bonds, stocks and mutual funds. Here we discuss the more important features of these products used in the context of financial reporting and the way the products are traded. Finally, we discuss the role of financial analysis and reporting of the financial markets in general and stock markets in particular. By the end of this part of the course, the student is able to: • Interpret the role and functions of the most important actors in the financial landscape and relate them to the general function of the banking and finance system. (2i) • Understand the functioning of the most important financial products (2a) • Understand and apply the most important concepts used in the financial press (31) • Relate the functioning of financial markets in general and stock markets in particular to the corresponding products traded on these markets. (2a, 2j) • Apply different techniques of financial analysis on different financial products (2j) • Distinguish between different investment strategies (e.g., speculative, investment,…) and assess its impact on the risk return relationship. In particular, he/she will have mastered the following competences: • The student has mastered a financial methodology with which he/she can process new insights and recognize problems