Objectives and competences
At the end of the course, students are expected to master the concepts and basic techniques of microeconomics, financial calculus (the time value of money), accountancy (understanding financial statements) and investments analysis.
Teaching Methodologies
The emphasis is on a hands-on, very pragmatic and applied approach in the sessions. Where possible and appropriate, cases will be discussed using Excel files.
Syllabus
- Fundamentals of Microeconomics
The economic problem. The economic concept of effectiveness. Production possibilities limit line. Supply and demand. Behavior of consumers and producers. Concepts of utility and elasticity. - Fundamentals of Financial Calculus
The intuitive basis for the time value of money. Monetary market and interest rate. Compounding and discounting: simple and compound interest. The relation between types of interest. Cash-flow discounting and updating. Annuities and perpetuities. - Fundamentals of Accountancy
Understanding financial statements. Balance sheet, Income Statements and Statement of cash-flows. Financial racios. - Fundamentals of Investment analysis
Approaches to investments decision making. Estimating cash-flows. Categories of decision rules. Cash-flow baser decision rules. Discount cash-flow measures. Comparing net present value and internal rate of return.
