Course code VadZ6009

Credit points 3

Finance and Investment Management

Total Hours in Course120

Number of hours for lectures12

Number of hours for seminars and practical classes24

Independent study hours84

Date of course confirmation21.06.2018

Responsible UnitInstitute of Finance and Accounting

Course developers

author prof.

Ingrīda Jakušonoka

Dr. oec.

author Finanšu un grāmatvedības institūts

Romēna Šulca

Dr. oec.

Course abstract

The course focuses on theoretical, methodological and practical issues in business and innovation financing and finance management by using the international practice and theory, as well as examining the EU and national legal act.

Learning outcomes and their assessment

1) Students will be able to demonstrate the understanding of the basic principles of financing, financial management decisions, innovation financing and financial risks – discussions in classes.
2) Demonstrate the understanding of long- and short-term ways of financing enterprises; cash flow and its management – test with calculations.
3) Demonstrate the knowledge of how to apply the most important asset management methods and assess financial investments economically – test with calculations.
4) Perform calculations, analyse the results obtained, understand causes and make proposals for avoiding problems or enhancing the situation – test with calculations, an examination, calculations during classes.
5) Choose the most appropriate kind of financing a project and assess the efficiency of a financial investment in comparison with other projects or investments, analyse and assess the financial and economic performance of projects as well as plan and assess the cash flow of a project, the effects of inflation and financial risks and draw up a budget – test with calculations, independent work, discussions in classes.
6) Independently assess the performance of another individual and produce a written report on it (whether the project cash flow, practical solutions as well as proposals are consistent with the expected results) – independent work.
7) Responsibly plan the completion of the assignments given. Select information, present the calculations performed and proposals made – independent work.
8) Aply the knowledge acquired, successfully develop projects, apply modern project financial management methods and maximally effectively plan and manage project finances, come up with proposals for decision-making based on the economic situation (change in inflation, financial risk under the circumstances of uncertainty) – practical assignments, tests, an examination.

Course Content(Calendar)

1. Place of financial management in the management of the company. (lecture 1 h)
2. Financial analysis and its role in decision-making. (lecture 1 h, practical classes 2 h)
3. Current assets and stocks, management. (lecture 1 h, practical classes 2 h)
4. Manage customers and money. (lecture 1 h, practical classes 2 h)
5. Sources of business and innovation financing. (lecture 1 h, practical classes 2 h)
6. Structure of capital and optimize it in the company. practical classes 2 h)
7. Ensuring the financial stability of the company. (lecture 1 h, practical classes 2 h)
8. Investment process, criteria for taking decisions on investment projects. (lecture 1 h, practical classes 2 h)
9. Financial calculations of investment projects and analysis of expected cash flow. (lecture 1 h, practical classes 2 h)
10. The system of indicators for evaluating investment projects and the methods for calculating them. (lecture 1 h, practical classes 2 h)
11. Analysis of the sensitivity of investment projects. (lecture 1 h, practical classes 2 h)
12. Financial investment management phases. (lecture 1 h, practical classes 2 h)

13. Valuation methods for assets. The CAPM model. Risk and yield. (lecture 1 h, practical classes 2 h)

Requirements for awarding credit points

Successfully completed 2 tests: Test 1 - Theoretical aspects of project financing and assessment. Cash flow discounting. Project assessment by NPV, DPP, IRR, ARR. Ranking of the results assessed by project assessment methods (20%). Test 2 - Financial investment policies, the capital asset pricing model CAMP, calculations on stocks and bonds (20%).
Presentation of a report on an individual study - Analysis and presentation of industry or enterprise financing models (20%).
Examination on the topics acquired during the course (40%).

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests. Presentation of a report on an individual study - Analysis and presentation of industry or enterprise financing models.

Criteria for Evaluating Learning Outcomes

Test, examination and presentation with mark – average score in balls.
(10% are equal to one point on a 10-point marking scale)

Compulsory reading

1. Alexander J. Financial Planing and Analysis and Performance Management. Canada, 2018. 612.p.
2. Bekaert, G., Hodrick, R. International Financial Management. International Edition. 2014.
3. Madura J., Fox R. International Financial Management. UK: Cengage Learning EMEA, 2014. 671.p.
4. Pike R, Neale B., Linsley P. Corporate Finance and Investment. UK: Pearson Education limited, 2015. 867 p.
5. Bodie Z., Kane A. Investment. 5th ed. Boston: McGraw-Hill/Irvin, 2002. 1015 p.
6. Kozlovs V. Investīciju projektu ekonomiskais novērtējums. Rīga: LHZB 2005. 131 lpp.
7. Pelšs A. Izmaksu analīze lēmumu pieņemšanai. Rīga: LU Akadēmiskais apgāds, 2000. 155 lpp.
8. Saksonova S. Finanšu informācijas un pārskatu praktiskā izmantošana uzņēmumu finanšu lēmumu pieņemšanā. Rīga: I.K. “INFO TILTS”, 2012. 313 lpp.
9. Sharpe W.S., G.J.Alexander G.J., J.V.Bailey J.V. Investments. 5th ed. M.Infra-M. 2009. 1028 p.
10. Šneidere R. Finanšu analīzes metodes uzņēmuma maksātnespējas prognozēšanai. Rīga:Lietišķās informācijas dienests, 2009. 232 lpp.
11. Vulfs G. Ievads projektu vadībā. Rīga: RTU, 2008. 96 lpp.
12. Энциклопедия финансового pиck – менеджмента. Под ред. kанд. экон. наук A. A. Лобанова и A. B. Чугунова. Mockвa: Альпина Бизнес Букс, 2009. 932 c.

Further reading

1. Alsiņa R., Bojarenko J., Zolotihina K. Vadības grāmatvedības pamati. Rīga: IU "RaKa", 2000. 140.lpp.
2. Alsiņa R., Gertners G. Uzņēmējdarbības plānošanas principi un metodes: mācību līdzeklis ekonomikas profila bakalauru un profesionālo programmu studijām; 2. pārstr. un papild. izd. Rīga: RTU, 2007. 230 lpp.
3. Brealey R.A., Myers S.C., Marcus A.J. Fundamentals of Corporate Finance. Boston: McGraw-Hill/Irwin, 2007.
4. Kasale M., Šneidere R. Finanšu pārskatu loma uzņēmējdarbības rezultātu novērtēšanā. Latvijas Universitātes Raksti: zinātnisko rakstu krājums, Nr. 671, 2004, 126.-134.lpp.
5. Kasalis J. Uzņēmumu finanšu pārskatu analīzes modeļi un to pielietojums dažādām lietotāju grupām. Promocijas darbs. Rīga: LU, 2005. 213 lpp.
6. Боди З., Кейн А., Маркус А. Принципы инвестиций. 4-е изд. Москва: 2002. 984 с.
7. Ковалев В.В. Финансовый менеджмент: теория и практика. 2-е изд. Москва: ТК Велби, Проспект, 2007.

Periodicals and other sources

1. Business Week. Bloomberg L.P.Businessweek. ISSN 0007-7135. Pieejams: http://www.businessweek.com.
2. Dienas Bizness. Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005- .ISSN 1407-2041
3. Finanšu portāls. Pieejams: http://www.financenet.lv
4. Finanšu vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
5. International Journal of Managerial Finance. Pieejams: http://www.emeraldinsight.com/products/journals/journals.htm?id=ijmf&PHPSESSID=9c0rsst1q6f4vhln4lesbbnav0
6. Laikraksts Latvijas Vēstnesis. Latvijas Republikas oficiālais laikraksts. ISSN 1407-0391
7. Latvijas Investīciju un attīstības aģentūra. Pieejams: http://www.liaa.lv
8. Lauku atbalsta dienests. Pieejams: http://www.lad.gov.lv
9. LR Ekonomikas ministrija. Pieejams: http://www.em.gov.lv

Notes

Compulsory course of study for full-time master’s in the “Business Management” programme for students of 1,5 and 2,0 years