Investment & Financing I (ILV)

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Course lecturer:

MMag.a

 Jirina Egarter , MSc
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Specialization AreaIntercultural Management
Course numberB4.06360.40.340
Course codeI&F1
Curriculum2023
Semester of degree program Semester 4
Mode of delivery Presencecourse
Units per week1,5
ECTS credits3,0
Language of instruction English

On successful completion of the course, students:

  • are able to prepare, negotiate and decide on complex investment and financing decisions
  • are able to evaluate investment projects on the basis of qualitative and quantitative criteria
  • can select suitable forms of financing depending on the respective company requirements and situations

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The course will cover the following topics/content:

  • Introduction to Investment and Finance.
The Finance Function:
Two Key Concepts in Corporate Finance; The Role of the Financial Manager; Corporate Objectives; Maximizing Shareholder Wealth
Capital Markets:
Sources of Business Finance; Capital Markets
Short-term Finance and Management of Working Capital:
The Objectives of Working Capital Management; Working Capital Policies
Examples/Case-Studies: Compounding + discounting
  • Short-term Finance and Management of Working Capital:
Working Capital and Cash Conversion Cycle; Overtrading; Managing Inventory; Managing Cash; Managing Receivables
Examples/Case-Studies:
Working capital; Economic order quantity (EOQ), Trade receivables
  • In-depth studying of the theory + quizzes;
Examples/Case-Studies: Compounding + discounting; Working capital; Economic order quantity (EOQ), Trade receivables
  • Short-term Finance and Management of Working Capital:
Managing Receivables
Long-term Finance:
Equity Finance; Bonds, Loan Notes, Loan Stock and Debentures;
Examples/Case-Studies: Factoring
  • Long-term Finance:
Bank and Institutional Debt; Convertible Bonds; Warrants; Valuation of Fixed and Convertible Bonds; Leasing
Examples/Case-Studies: Annual Loan Payments
  • In-depth studying of the theory + quizzes;
Examples/Case-Studies: Annual Loan Payments
  • Long-term Finance:
Leasing
Overview of Investment Appraisal Methods:
The Payback Method; The Return on Capital Employed (ROCE) Method;
Examples/Case-Studies: Leasing vs. Borrowing; Payback Method; ROCE
  • In-depth studying of the theory + quizzes;
Examples/Case-Studies: Leasing vs. Borrowing; Payback Method; ROCE
  • Overview of Investment Appraisal Methods:
The Net Present Value Method (NPV); The Internal Rate of Return (IRR) Method; A Comparison of NPV and IRR Methods;
Examples/Case-Studies: NPV; IRR
  • In-depth studying of the theory + quizzes;
Examples/Case-Studies: NPV; IRR
  • Overview of Investment Appraisal Methods:
The Profitability Index and Capital Rationing; The Discounted Payback Method
Investment Appraisal: Applications and Risks:
Relevant Project Cash Flows; Taxation and Capital Investment Decisions;
Examples/Case-Studies: Discounted payback method; NPV involving taxation
  • In-depth studying of the theory + quizzes;
Examples/Case-Studies: Discounted payback method; NPV involving taxation
  • Investment Appraisal: Applications and Risks:
Inflation and Capital Investment Decisions; Investment Appraisal and Risks

Beike, R./Schlütz, J. (2010): Finanznachrichten: lesen - verstehen - nutzen. 5. Auflage. Stuttgart: Schäffer-Poeschel.
Mussnig, W./Bleyer, M./Giermaier, G. (2014): Controlling für Führungskräfte: Analysieren - Bewerten - Entscheiden. 3. Auflage. Wien: Linde.
Nadvornik W./Brauneis A./Grechenig S./Herbst A./Schuschnig T. (2015): Praxishandbuch des modernen Finanzmanagements. 2. Auflage. Wien: Linde.
Olfert, K./Reichel Ch. (2008): Finanzierung. 14. Auflage. Ludwigshafen: Kiehl.
Urnik, S./Schuschnig, T. (2015): Investitionsmanagement - Finanzmanagement - Bilanzanalyse. 2. Auflage. Wien: Manz.
Wagenhofer, A. (2019): Bilanzierung und Bilanzanalyse: Eine Einführung. 14. Auflage. Graz: Linde.
Wöhe G./Bilstein J. (2013): Grundzüge der Unternehmensfinanzierung. 11. Auflage. München: Vahlen.

Lecture, moderated group work, processing of case studies from practice
Groups

Cumulative module examination
The module grade is calculated weighted by the ECTS credits of the courses:
ILV "Investment & Financing I" - 3 ECTS
Assessment type: continuous assessment
Assessment method/s: participation in class, preparation of case studies, written final examination