Intermediate finance and accounting

As from 2024-2025 scheduled in Quartile 2 timeslot B

The first part of this course builds upon the material taught in 1CV10. In particular, students learn how to create and analyze the cash flow statement. Besides, they learn how to use financial ratios to analyze and interpret the performance of a company.

In the second part of the course, students learn various (quantitative) methods and techniques to facilitate proper financial decision making. We start with techniques to evaluate deterministic cash flows streams. In particular, students learn how to work with the net present value and internal rate of return. Thereafter, students apply these techniques to value fixed income securities such as loans, mortgages and bonds. They also use these techniques to value firms, discuss how to structure firm capital and execute proper capital budgeting. Thereafter, students learn and apply the mean-variance model of Nobel laureate Markowitz and the capital asset pricing model. These models introduce (one-period) uncertainty and illustrate the trade-off between risk and return. Finally, students learn the basics of (financial) options, and how to use them to manage risk.

Two group assignments are part of this course. These assignments will deal with realistic business problems.

The aim of this course is two-fold. First, students learn how to create and analyze financial statements. Secondly, students learn (quantitative) methods and techniques to facilitate proper financial decision making. More specifically, at the end of the course, students are able to:

• Create and analyze cash flow statements;
• Assess firm performance by computing appropriate financial ratios;
• Evaluate deterministic cash flows streams via net present value and internal rate of return;
• Analyze fixed income securities such as loans, mortgages and bonds;
• Calculate the value of a firm, discuss how to structure firm capital, and execute proper capital budgeting;
• Apply the mean-variance model and capital asset pricing model and interpret outcomes;
• Use financial options to manage risk.

You must meet the following requirements

• Registered for a degree programme other than
• HBO-TOP Applied Physics, Pre-Master
• Completed all course modules listed below
• Fundamentals of fin&mgt acc (1CV10)

• David Luenberger. Investment Science. Oxford University Press. International edition. (ISBN 9780195391060)
• Peter Atrill , Eddie McLaney. Financial Accounting for Decision-Makers. Prentice-Hall. 10th edition. (ISBN 9781292251257)