Finance I is a course carried out on the basis of a program and standards compliant with the ACCA-accredited Finance I (ACCA) course. This does not mean that the ACCA standard exam is more difficult or easier than its equivalent taken in the WNE standard. It may be different, but it tests the same knowledge as the Faculty-standard exam. Participation in this subject and passing the exam according to the form required by ACCA standards may help students who are willing to take the external exam for the ACCA (FM) certificate.
Consecutive lectures focus on the following matters:
1.The role and structure of the financial system: characteristics of money; money circulation in the economy; characteristics, elements and functions of the financial system
2.Time value of money: the value of money as a function of time; calculation of time in financial mathematics; interest rate and discount rate; interest rates and inflation; the nominal and effective interest rate; annuities (due/immediate, arithmetic/geometric annuities, perpetuities); settlement of debt (equivalence of debt and settlements, debt repayment schedules, debt restructuring)
3.Investment appraisal criteria: financial investments; simple and discounted payback period; return on investment; net present value; internal and external rate of return
4.Money market: segments and instruments of the money market, interbank deposits, bills, certificates
5.Capital market: participants and instruments of the capital market; organization of the capital market
6.Analysis and valuation of shares: types of shares, shareholders’ rights, discounted dividend model
7.Analysis and valuation of bonds: types of bonds; the factors affecting the price of bonds; dirty and clean price and accrued interest of bonds; interest rate risk
8.Business risk: types of risk in the economic activity; quantity and value breakeven point; degree of operational, financial and total leverage
9.Structure and analysis of financial statements: balance sheet, income statement and cash flow statement (analysis of liquidity, profitability, debt)
Type of course
obligatory courses
Course coordinators
Learning outcomes
After completing the course the student is aware of the importance of the capital market and financial market economics, knows how to analyze the value of money in time, knows the criteria for making investment decisions, knows what risks are associated with running a business, knows the basic methods of valuation of financial instruments.
The student is able to analyze various segments of the financial market, to perform a valuation of ownership and debt financial instruments, assess the business risk, as well as to analyze the company's financial situation.
The student correctly identifies and resolves dilemmas related to business activities. He or she is able to broaden the acquired knowledge and skills so as to expand them to the extent required for professional work. With a broad look at a variety of financial problems, the student can think and act in an entrepreneurial way.
KW01, KW02, KW03, KU01, KU02, KU03, KU04,
Assessment criteria
To complete the course, the student has to pass a written exam once he or she has already passed the laboratory part of the course (i.e. acquired at least a grade 3 [sufficient grade]).
The exam is divided into three sections: Section A consisting of 10 multiple choice theoretical questions (each question is worth 1 point), section B consisting of 10 multiple choice questions with short calculations (each question is worth 2 points) and Section C consisting of 2 open questions (each question is worth 10 points).
The passing threshold is 50%.
exam pts 50 45-49 40-44 35-39 30-34 25-29 0-24
exam grade 5,5 5 4,5 4 3,5 3 2
When calculating the final grade, the tutorial grade is taken into account (tutorial grade weight 25%, exam grade weight 75%):
the exam grade
5,5 5 4,5 4 3,5 3 2
the
tut. grade
5,5 5,5 5 5 4,5 4 3,5 2
5 5,5 5 4,5 4,5 4 3,5 2
4,5 5,5 5 4,5 4 4 3,5 2
4 5 5 4,5 4 3,5 3,5 2
3,5 5 4,5 4,5 4 3,5 3 2
3 5 4,5 4 4 3,5 3 2
2 2 2 2 2 2 2 2
During the exam students have access to financial tables and can only use a simple calculator (not a mobile phone nor a financial calculator).
In the 2021/22 academic year, depending on the epidemiological situation the final exam and tutorial exam will be carried out in the room or distantly.
Bibliography
Mandatory literature:
Dębski W., Rynek finansowy i jego mechanizmy, PWN
D. Blake, Financial market analysis, John Wiley & Sons, 2000 (in English)
L. J. Gitman, Ch. J. Zutter, Principles of managerial finance, Pearson, 2015 (in English)
Supplementary literature:
Jajuga K., Inwestycje finansowe, Wydawnictwo AE we Wrocławiu
Rutkowski A., Zarządzanie finansami, PWE
Steiner R., Kalkulacje finansowe, Dom Wydawniczy ABC
Podgórska M., Klimowska J., Matematyka finansowa, PWN
Brealey R.A., Myers S., Podstawy finansów przedsiębiorstw, PWN
Nowak E., Analiza sprawozdań finansowych, PWE
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system:
- Description of 2400-FIM2FI1A in USOSweb
