Code
MGFE FIN 4401
Niveau
M1
Discipline
Finance
Langue
Anglais/English
Crédits ECTS
2
Heures programmées
20
Charge totale étudiant
40
Coordonnateur(s)
Département
- Data analytics, Économie et Finances
Equipe pédagogique
Introduction au module
This course introduces students to the main tools and concepts used in financial decision-making. It covers portfolio theory, the efficient frontier, the CAPM, capital budgeting, stock and bond valuation, and the cost of capital. Students will learn how to assess risk and return, value financial assets, and evaluate investment projects using standard financial methods.
Finalité d'apprentissage (Bloc de compétences)
- 6. Concevoir et/ou piloter des solutions de gestion innovantes en veillant à garantir une création de valeur soutenable pour toutes les parties prenantes
Objectifs d'apprentissage
- 6.2 - Optimiser l'usage d'outils adaptés aux différents domaines de gestion, et définir et interpréter les KPI pertinents, afin de mesurer et garantir une création de valeur durable et soutenable pour toutes les parties prenantes.
Traits de compétences
By the end of this PGE M1 course, students will be able to:
1. Describe the role of the financial system and analyse major financial issues, including long-term investment choices and financial crises.
2. Calculate and interpret the return and risk of individual assets and portfolios using standard financial measures.
3. Construct and analyse the efficient frontier, with and without a risk-free asset, in order to assess portfolio choices.
4. Apply the CAPM to estimate expected returns and interpret the relationship between systematic risk and required return.
5. Evaluate investment projects by forecasting free cash flows and applying capital budgeting criteria such as NPV and IRR.
6. Value stocks and bonds using standard valuation models, and assess the impact of growth assumptions, interest rates, yields and credit risk.
7. Estimate the cost of equity, cost of debt and weighted average cost of capital in order to support financial decision-making.
Contenu : structure du module et agenda
1. A Review on Finance
1.1 Financial System
1.2 Best Long-term Investment
1.3 Crisis Analysis
2. Portfolio Theories
2.1 Mathematical Preparation
2.2 Returns
2.3 Risk
2.4 Portfolio
3. Efficient Frontier
3.1 Efficient Frontier without Risk-free Asset
3.2 Efficient Frontier with Risk-free Asset
4. CAPM
4.1 Sharpe Ratio
4.2 Capital Asset Pricing Model (CAPM)
5. Capital Budgeting
Recall on Accounting and Time Value of Money
5.2 Forecast FCF
5.3 NPV and IRR
6. Stock Valuation
Constant Dividend-Discount Model
6.2 Constant Dividend Growth
6.3 Dividend vs. Investment and Growth
6.4 Changing Growth Rates
6.5 Limitations of the Dividend-Discount Model
7. Bonds Valuation
7.1 Bond Cash Flows, Prices and Yields
7.2 Dynamic Behavior of Bond Prices
7.3 Corporate Bonds
7.4 Bond Ratings
8. Cost of Capital
8.1 8.1 The Equity Cost of Capital
8.2 The Debt Cost of Capital
8.3 A Project’s Cost of Capital
8.4 Weighted Average Cost of Capital
Contribution à l'atteinte des ODD (Objets du Développement Durable)
SDG 8 – Decent Work and Economic Growth: This course contributes to SDG 8 by helping students make informed investment and financing decisions that support responsible capital allocation and sustainable economic performance.
Nombre d'ODD abordés parmi les 17
1
Apprentissage
synchrone
Méthode pédagogique
The course combines lectures, guided exercises, case studies and problem-solving sessions. Lectures introduce the key financial concepts, models and decision-making frameworks. Guided exercises and problem-solving sessions allow students to apply valuation, portfolio and capital budgeting methods step by step. Case studies help students connect financial tools to practical investment, financing and valuation decisions.
Système de notation et modalités de rattrapage
Attendance is mandatory for this course.
The assessment evaluates students’ ability to apply the financial concepts, models and tools covered in class to structured problems and decision-making situations. It measures their capacity to calculate and interpret financial indicators, analyse risk-return trade-offs, value financial assets, evaluate investment projects and justify financial decisions using appropriate methods.
The final grade consists of two closed-book written exams:
Mid-term exam: 40% of the final grade, 1 hour.
Final exam: 60% of the final grade, 2 hours.
Bonus points may be awarded based on attendance and participation in class discussions.
In case of absence from an exam, the grade for that exam will be 0. If the absence is justified and validated by the administration, the corresponding exam will be neutralised.
There is no separate resit exam for the mid-term exam alone.
In case of failing the course, a closed-book written resit exam will be organised. The resit exam will stand alone as the final grade for the course and will be capped at 10/20.
Règlement du module
1. Professor–Student Communication
The professor will communicate with students through their institutional school email address (IMT-BS/TSP) and/or the Moodle portal. No communication will be sent to personal email addresses. Students are responsible for regularly checking their IMT-BS/TSP mailbox and Moodle announcements.
Students may contact the professor by email using the professor’s institutional email address. When necessary, students may meet the professor during office hours or by appointment.
2. Students with Accommodation Needs
Students who have a disability or any specific accommodation need that may affect their ability to complete the required work must inform the professor during the first class, in order to facilitate the necessary arrangements in accordance with the school’s applicable procedures.
3. Class Attendance and Behaviour
Students are expected to attend class, arrive on time and behave respectfully throughout the session.
Unless explicitly authorised by the professor, the use of electronic devices, including computers, mobile phones and tablets, is prohibited during class. Students are not allowed to take photos, videos or audio recordings in the classroom without the professor’s explicit consent.
Students must avoid disruptive or disrespectful behaviour, including arriving late, leaving early, sleeping, reading non-course material, using inappropriate language, speaking over others, eating or drinking during class, or engaging in any behaviour that disturbs the class. A warning may be given for a first violation. Repeated violations may lead to penalties, exclusion from the class and/or disciplinary proceedings.
A delay of up to 10 minutes is tolerated at the beginning of class. Attendance will be recorded on Edusign during this 10-minute period using a QR code provided by the professor at the start of each session.
Leaving the classroom before the end of the session without the professor’s approval will be considered an absence.
In the case of remote learning, students must keep their camera on unless instructed otherwise by the professor.
Only absences justified by the Registrar’s Office will be accepted. The justification must be sent to the professor no later than two days after the student returns to campus.
4. Exams and Assessments
Students must arrive on time for exams and other assessments. A delay of up to 10 minutes is tolerated.
No student may continue the exam once the allocated time is over. No student may leave the room during an examination unless they have finished the exam and handed in all required documents.
Only the following items are allowed during exams:
pens;
student card;
a non-programmable calculator, or a programmable calculator with activated EXAM mode.
All other items are prohibited.
Possession of any unauthorised electronic device, even if turned off, will be considered cheating.
Possession of a programmable calculator without activated EXAM mode, even if turned off, will be considered cheating.
A random check may be carried out after students are instructed to activate EXAM mode. Failure to prove that EXAM mode has been activated after this instruction will be considered cheating.
Students are responsible for knowing how to activate EXAM mode on their calculator before the exam.
Any violation of the instructions given by the professor or the examination supervision team will be reported to the Discipline Committee.
Références obligatoires et lectures suggérées
Berk, J. and DeMarzo, P., Corporate Finance.
Brealey, R., Myers, S. and Allen, F., Principles of Corporate Finance.
Bodie, Z., Kane, A. and Marcus, A., Investments.
Ross, S., Westerfield, R. and Jaffe, J., Corporate Finance.
Damodaran, A., Investment Valuation: Tools and Techniques for Determining the Value of Any Asset.
Fabozzi, F. J., Bond Markets, Analysis, and Strategies.
Mots-clés
Financial decision-making; portfolio theory; risk and return; efficient frontier; CAPM; capital budgeting; NPV; IRR; stock valuation; bond valuation; cost of capital; WACC; green bonds.
Prérequis
ACC 3403 EN (equivalent ACC 3003 FR), FIN3409 EN (equivalent FIN 3009 FR), INF 3403 EN (equivalent INF 3003 FR), LinkedIn Learning - Statistics Foundations 1 and 2