2023 Advanced Master Course Syllabus Finance

Advanced Master in Innovation and Strategic Management
Course syllabus
Financial Management: Principles and Applications

Professor : Mathias Schmit
1. Brief description
This course will mainly deal with project/corporate valuation and capital budgeting decisions. It
will not only develop the understanding of the fundamental concepts of finance but will also
provide students with the tools to apply the knowledge in practical situations.
Participants completing this course should be able to:

1. Understand financial statements of any companies (taught in prerequisite module)
2. Assess the commercial/ investing / financing / dividend policies of a company
3. Analyse where the company value is coming from and the concept of sustainable growth
and strategic risk
4. Appraise the importance of time value in financial valuation
5. Understand investment decision criteria under financial constraints
6. Risk- Expected return relationship
7. Value financial assets, projects and companies
1
2. Learning outcomes/Objectives of the course
Today, managers in all areas of an organization must have an appreciation of the financial
consequences of their decisions, as well as a precise understanding of the financial tools that drive
strategic planning and business decision-making.
The Corporate Finance course should help students to prepare to make better business decisions
by integrating financial and accounting concepts in their thinking. They should leave the program
with the confidence to ask the right questions and to actively participate in the decisions that
affect your organization’s financial performance.
After the course, the participants should:

 Become more conversant with financial statements to better understand how business
decision outcomes are reflected in your organization’s financial report.
 Develop the decision-making skills by integrating financial management concepts into the
thinking
 Heighten the financial insights into many business issues such as investment, investor
relations, and financial risk management
 Learn how to go beyond accounting figures to show your unit’s real economic
performance and potential
 Improve the evaluation and justification process for capital spending proposals
 Make more effective and profitable use of cash resources
 Use financial management tools to make more informed decisions on product
discontinuations, product launches, outsourcing, and organizational restructuring
 Improve the communication with financial managers within the organization and learn
how to raise the right questions
2
3. Course structure
Important: The prerequisite course should be fully mastered. For each part of the course, a
description including the pre-readings and case studies lists (to be carefully prepared before the
course sessions) will be provided.
Dates Topics References and cases
PART 1 : The cash-flows statement and financial planning
1 12 September  Introduction  Schmit M. (2020), Introduction to

& 9 AM to 1 PM  Magerial view of the balance financial analysis, Balance sheet,
2 AND sheet (NWC, WCR and NLB) income statement and accounting
 Statement of cash flows principles, (document 1)
 Financial planning  Schmit M. (2020), Introduction to
26 September
9 to 1 PM  Short-term financing financial analysis, Managerial balance
 Long-term financing sheet interpretation, (document 2)
 Sustainable growth  Schmit M. (2020), Introduction to
 Liquidity vs. solvency financial analysis, Accounting ratios
analysis, (document 3)
 Schmit M. (2020), Cash flow statement
analysis, (document 4)
Higgins R. (2016), Analysis for financial
management, McGraw-Hill, 11th ed.,
chapter 4.
 Gilbert Lumber case

 AB INBEV case
 Additional references will be provided

in due time
PART 2 : Time value, discounting and investment decisions
3 28 September  The time value of money  Schmit M. (2016), Time valuation and
9 AM to 1 PM  Discounting vs. Capitalisation asset valuation, pages 1 to 28
 Mortgage Financing case
in due time
3
4 3 October  Capital budgeting  Higgins R. (2007), Analysis for Financial
9 AM to 1 PM  Investment decisions rules Management, McGraw-Hill, 8th edition
(NPV, IRR, payback, EAR, etc.) o Chapters 7 and 8 – Evaluating
Investment Opportunities
 Investment detective case

in due time
PART 3 : Risk – Expected return relationship
5 10 October  Financial asset valuation  To be defined

9 AM to 1 PM  Introduction to portfolio
management
 Risk – expected return
relationship
 Has it changed with Covid19
crisis?
PART 4 : Project and Corporate valuation
6 17 October  Assessing the components  ABXYZ case

9 AM to 1 PM accounted for in  To drink or not to drink case
company/project evaluation
 Evaluating the financing  Additional references will be provided
requirements and impact of a in due time
financing structure
 Understanding and valuating
the tax benefits of various
types of financing
 Developing your awareness of
typical mistakes made during
company valuation
7 27 October WRITTEN EXAM
9 AM to 1 PM
4. Learning methods
Each topic is introduced with an interactive lecture including short questions and exercises enabling
participants to reinforce immediately their understanding of the material to be prepared before the
course. Extensive use of real company examples and of case studies will be made. Case studies will
be used for two purposes. Simple cases will be used to revise material considered in course and to
introduce new financial issues and analytical techniques. Longer and more complex cases will be
used to explore issues more fully and to place them in real settings. Students will be expected to
spend time working on such cases. Active involvement from the students is highly expected.
4
5. Evaluation type
Evaluation type:
 Written exam 80%

 Group Assignment 20%
Resit
In case a resit exam is needed, a second session will be organized. It would take the same format as
the one in the first session. More details will be provided at the beginning of the course.
6. Professor information
Programme Advanced Master in Innovation and Strategic

Management
Course title Financial Management: Principles and
Applications
Professor name Mathias Schmit
Term 1
Email Mathias.schmit@ulb.be
Phone (office and mobile for last-minute 0032496/93.22.70
change)
Country of citizenship French / Luxembourg citizen
Current company ULB & Sagora
Current position Managing Director
Biography – In maximum 5-10 lines, resume a Mathias Schmit has a PhD in Finance from the
biography synopsis in a narrative text (mainly Solvay Brussels School of Economics and
your experiences & background) Management (Brussels), where he is a Professor
of Finance. Since the creation of SAGORA in
2005, a company coping with executive
trainings, financial analysis and risk
management missions. He has also been a
lecturer at INSEAD, Amsterdam Institute of
Finance, Université Aix-en-Provence Marseille,
in Vietnam and at major conferences around
Europe. He is also board member of some
organisations.

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Advanced Master in Innovation and Strategic Management

Financial Management: Principles and Applications

Participants completing this course should be able to:

After the course, the participants should:

Dates Topics References and cases

PART 1 : The cash-flows statement and financial planning

1 12 September  Introduction  Schmit M. (2020), Introduction to

 Gilbert Lumber case

 Additional references will be provided

PART 2 : Time value, discounting and investment decisions

 Investment detective case

 Additional references will be provided

PART 3 : Risk – Expected return relationship

5 10 October  Financial asset valuation  To be defined

6 17 October  Assessing the components  ABXYZ case

 Written exam 80%

Programme Advanced Master in Innovation and Strategic

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