On successful completion of the course, students:

• are able to prepare, negotiate and decide on complex investment and financing decisions
• are able to evaluate investment projects on the basis of qualitative and quantitative criteria
• can select suitable forms of financing depending on the respective company requirements and situations

none

The course will cover the following topics/content:

• Introduction to Investment and Finance.
  The Finance Function:
  Two Key Concepts in Corporate Finance; The Role of the Financial Manager; Corporate Objectives; Maximizing Shareholder Wealth
  Capital Markets:
  Sources of Business Finance; Capital Markets
  Short-term Finance and Management of Working Capital:
  The Objectives of Working Capital Management; Working Capital Policies
  Examples/Case-Studies: Compounding + discounting

• Short-term Finance and Management of Working Capital:
  Working Capital and Cash Conversion Cycle; Overtrading; Managing Inventory; Managing Cash; Managing Receivables
  Examples/Case-Studies:
  Working capital; Economic order quantity (EOQ), Trade receivables

• In-depth studying of the theory + quizzes;
  Examples/Case-Studies: Compounding + discounting; Working capital; Economic order quantity (EOQ), Trade receivables

• Short-term Finance and Management of Working Capital:
  Managing Receivables
  Long-term Finance:
  Equity Finance; Bonds, Loan Notes, Loan Stock and Debentures;
  Examples/Case-Studies: Factoring

• Long-term Finance:
  Bank and Institutional Debt; Convertible Bonds; Warrants; Valuation of Fixed and Convertible Bonds; Leasing
  Examples/Case-Studies: Annual Loan Payments

• In-depth studying of the theory + quizzes;
  Examples/Case-Studies: Annual Loan Payments

• Long-term Finance:
  Leasing
  Overview of Investment Appraisal Methods:
  The Payback Method; The Return on Capital Employed (ROCE) Method;
  Examples/Case-Studies: Leasing vs. Borrowing; Payback Method; ROCE

• In-depth studying of the theory + quizzes;
  Examples/Case-Studies: Leasing vs. Borrowing; Payback Method; ROCE

• Overview of Investment Appraisal Methods:
  The Net Present Value Method (NPV); The Internal Rate of Return (IRR) Method; A Comparison of NPV and IRR Methods;
  Examples/Case-Studies: NPV; IRR

• In-depth studying of the theory + quizzes;
  Examples/Case-Studies: NPV; IRR

• Overview of Investment Appraisal Methods:
  The Profitability Index and Capital Rationing; The Discounted Payback Method
  Investment Appraisal: Applications and Risks:
  Relevant Project Cash Flows; Taxation and Capital Investment Decisions;
  Examples/Case-Studies: Discounted payback method; NPV involving taxation

• In-depth studying of the theory + quizzes;
  Examples/Case-Studies: Discounted payback method; NPV involving taxation

• Investment Appraisal: Applications and Risks:
  Inflation and Capital Investment Decisions; Investment Appraisal and Risks

Beike, R./Schlütz, J. (2010): Finanznachrichten: lesen - verstehen - nutzen. 5. Auflage. Stuttgart: Schäffer-Poeschel.
Mussnig, W./Bleyer, M./Giermaier, G. (2014): Controlling für Führungskräfte: Analysieren - Bewerten - Entscheiden. 3. Auflage. Wien: Linde.
Nadvornik W./Brauneis A./Grechenig S./Herbst A./Schuschnig T. (2015): Praxishandbuch des modernen Finanzmanagements. 2. Auflage. Wien: Linde.
Olfert, K./Reichel Ch. (2008): Finanzierung. 14. Auflage. Ludwigshafen: Kiehl.
Urnik, S./Schuschnig, T. (2015): Investitionsmanagement - Finanzmanagement - Bilanzanalyse. 2. Auflage. Wien: Manz.
Wagenhofer, A. (2019): Bilanzierung und Bilanzanalyse: Eine Einführung. 14. Auflage. Graz: Linde.
Wöhe G./Bilstein J. (2013): Grundzüge der Unternehmensfinanzierung. 11. Auflage. München: Vahlen.

Lecture, moderated group work, processing of case studies from practice

Cumulative module examination
The module grade is calculated weighted by the ECTS credits of the courses:
ILV "Investment & Financing I" - 3 ECTS

• Assessment type: continuous assessment
• Assessment method/s: participation in class, preparation of case studies, written final examination