Duration
30h Th
Number of credits
| Master in management (120 ECTS) (evening classes) | 5 crédits | |||
| Master in management (60 ECTS) (evening classes) | 5 crédits |
Lecturer
Language(s) of instruction
French language
Organisation and examination
Teaching in the first semester, review in January
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
What is the role of financial markets in providing capital? How does the financial system operate? What role do financial intermediaries such as banks, insurances and investment funds have? These are the main questions that will be addressed by the Finance and Insurance Principles class.
The Finance and Insurance Principles class lays the theoretical foundations for answering the following questions:
o In the "Financial markets" field - What are the available financial products and what are their underlying risks? How to value bonds/stocks? What return can be expected from investments in the financial markets?
o In the "Corporate Finance" field - How to value the attractiveness of an investment project? How to optimally allocate corporate financial resources amongst several investment opportunities?
o In the "Insurance" field - What are the basic concepts in the insurance business? How to value risks implied in the insurance business, how to determine insurance premiums? How do insurers deal with uncertainty?
The course will be organized in 2 parts. Part 1 introduces the basics of financial mathematics, of financial markets as well as risk analysis. Part 1 is structured in 2 modules. The first module introduces the time-value-of-money concept with the principles of capitalization and actualization, the distinction between simple and compounded interest rates, nominal and yield to maturity, as well as the concepts of net present value and annuity. The second module introduces the concept of risk-adjusted return. Students will be introduced to portfolio management and capital asset pricing model.
Part 2 applies the concepts covered in models 1 and 2:
o Asset valuation (stocks, bonds)
o Portfolio management and performance analysis
o Investment project valuation and capital budgeting decisions
o Relationships between finance and insurance - actuaries are said to be risk "engineers"
Learning outcomes of the learning unit
At the end of the course, students will
- acquire the fundamental knowledge and understanding in financial management to perform a rigorous analysis of management problems such as financial investment decisions, capital budgeting decisions and insurance management.
- be able to solve autonomously concrete complex and transversal financial management problems in Market Finance, Corporate Finance and Insurance Management.
This course contributes to the following Intended Learning Outcomes : ILO-1 : To strengthen knowledge and understanding of management disciplines and its legal, policy and social context
ILO-2 : Gaining the knowledge and understanding of one of the proposed fields of concentration
ILO-4 : To acquire the capacity to research autonomously and methodically the information needed to solve a complex, transversal management problem
ILO-6: Integrate autonomously researched information, tools, knowledge and context to build and propose, either individually or as part of a team, original, creative and viable solutions to concrete complex management problems whether real or simulated.
Prerequisite knowledge and skills
Statistics and probability
Planned learning activities and teaching methods
The course will be structured into lectures, discussions around key financial management issues and exercise sessions. Lectures will transfer to students the theoretical knowledge and the practical tools for solving complex financial management problems. Exercise sessions will allow students to apply the tools learnt during the course on a selection of financial management problems. The exercices might sometimes be integrated to the lectures. Workshops with practitioners will illustrate the key financial management problems addressed throughout the class.
Mode of delivery (face-to-face ; distance-learning)
The course take place from September to November for a total of 30 hours.
The course starts on September 23rd, 2017.
Recommended or required readings
Recommended readings:
- Pierre Vernimmen - Finance d'entreprise, Pascal Quiry et Yann Le Fur, 2012, Edition Dalloz
- Mathématiques et gestion financière - Applications avec exercices corrigés, Octave Jokung Nguéna, Edition de Boeck
- Aswath Damodaran, Pratique de la finance d'entreprise, De Boeck
These readings will enable students to deepen their understanding of the key concepts seen throughout the course. Students' understanding will be tested at the written exam.
Mandatory reading:
Slides and other documents uploaded on the lol@ platform.
The course material (slides, exercises) will be available on the course web page on lol@.
Assessment methods and criteria
A written exam organized in January/February will assess students' understanding of fundamentals in corporate finance, market finance and in the field of insurance as well as their ability to solve financial (including portfolio and insurance) management problems.
Two sessions are organized.The first session exam is scheduled in January/February and the second session exam in August/September. There is no intermediary session.
Upon request, individual meetings for reviewing his/her exam copies will be organized. The meetings can take place within 4 weeks (maximum) after the release of the results. Students are asked to contact the professor within the week after the release of the results to make an appointment.
The students who could not present the exam in the first session for medical or professional reasons are asked to present a certificate at the "apparitorat". A second chance will be given to these students after (and conditional to) the written second session exam organized in August. To be eligible, the students must have at least 5/20 at the second session (written) exam and they must have remitted his/her certificate within the week following the exam. Late submission of certificates will not be taken into consideration.
Work placement(s)
none
Organizational remarks
Active class participation is recommended for a good preparation to the exam. Students are invited to ask questions on the material during the class and at the end of each session. Students are invited to contact Joachim Davoli or Thomas Bonesire, should they need further explanation.
Students are invited to check the lol@ platform on a regular basis for any practical information regarding the course.
In case of questions regarding the concepts seen in class, students should contact the assistant responsible for the course (Maxime Ledent) to schedule an appointment. Maxime Ledent will then organized, individually or in group, a meeting with one member of the team of Professor Lambert (Joachim Davoli, Cédric Gillain or Maxime Ledent).
Contacts
Marie Lambert - Associate Professor - marie.lambert@ulg.ac.be
Teaching support:
Maxime Ledent (Assistant and coordinator) - maxime.ledent@ulg.ac.be
Joachim Davoli (Assistant) - joachim.davoli@ulg.ac.be
Cédric Gillain (PhD candidate) - cedric.gillain@ulg.ac.be
Items online
Slides and exercises
Slides and exercises are available under "documents" on lol@ platform.