Introduction to Finance
Course Title: Introduction to Finance
Institution: IAE Dijon - Université de Bourgogne
Programs: International Track L2 & IMBS Program
Level: Undergraduate (L2) & Graduate (M1)
Duration: 20 hours of Lectures (CM)
Instructor: Marc [Nom]
Language of Instruction: English
1. Course Description & Objectives
This course provides a foundational understanding of the core principles of corporate finance. It
is designed for students with little or no prior background in finance. The aim is to equip
students with the analytical tools and conceptual framework necessary to understand how
businesses make critical financial decisions, including investment selection, financing, and risk
management.
Upon successful completion of this course, students will be able to:
Understand the fundamental goal of financial management: shareholder value
maximization.
Interpret key financial statements from a financial perspective.
Apply the concepts of the Time Value of Money (TVM) to value future cash flows.
Evaluate investment opportunities using capital budgeting techniques (NPV, IRR,
Payback).
Understand the characteristics of debt and equity and the basics of a company's capital
structure.
Calculate the cost of capital and understand its role in investment decisions.
Identify basic financial risks and the rationale for risk management.
2. Target Audience
This course is designed for two distinct groups:
L2 International Track students: High-potential undergraduates with a strong academic
background.
IMBS students: Graduate students seeking to solidify their foundational knowledge in
finance before advancing to more specialized topics.
3. Prerequisites
A basic understanding of accounting (ability to read a balance sheet and an income statement)
and mathematics (algebra) is recommended.
4. Teaching Methodology
The course will blend theoretical concepts with practical, real-world applications. Each session
will include:
Interactive lectures presenting key concepts.
Practical numerical exercises and case studies to apply the theory.
Encouragement of class discussion and questions to foster an engaging learning
environment.
5. Evaluation Methods (To be discussed)
Final Exam (60-70%): A comprehensive exam combining multiple-choice questions,
short exercises, and a case study to test the understanding of key concepts and
calculative proficiency.
Group Case Study/Presentation (30-40%): A practical assignment where small groups
analyze a company's financial decision or a small investment project, promoting
teamwork and applied learning.
6. Detailed Session Plan (20 hours)
Part 1: The Foundations (6 hours)
Session 1 (2h): Introduction to Corporate Finance
o The role of the financial manager.
o The fundamental goal: Shareholder wealth maximization.
o Agency theory: Managing conflicts of interest.
Session 2 (2h): Financial Statement Analysis
o A quick review of the Balance Sheet, Income Statement, and Cash Flow
Statement.
o Key financial ratios for performance analysis (Liquidity, Profitability, Leverage).
Session 3 (2h): The Time Value of Money (TVM)
o Present Value (PV) and Future Value (FV).
o Valuing annuities and perpetuities.
o Applications: Saving and borrowing.
Part 2: Valuing Investments and Projects (8 hours)
Session 4 (2h): Capital Budgeting I - The Tools
o Net Present Value (NPV): The gold standard.
o Internal Rate of Return (IRR) and the Payback Period.
Session 5 (2h): Capital Budgeting II - Application
o Estimating project cash flows.
o Comprehensive exercises and case studies on investment appraisal.
Session 6 (2h): Risk and Return
o Defining risk and measuring returns.
o Diversification: The difference between specific and market risk.
Session 7 (2h): The Cost of Capital
o Cost of Debt vs. Cost of Equity.
o Introduction to the Weighted Average Cost of Capital (WACC).
Part 3: Financing and the Big Picture (6 hours)
Session 8 (2h): Financing a Company
o Debt vs. Equity: Characteristics and trade-offs.
o Introduction to Capital Structure theory (Modigliani & Miller without taxes).
Session 9 (2h): Introduction to Financial Markets & Instruments
o Overview of bonds and stocks.
o The role of financial markets and institutions.
Session 10 (2h): Course Integration & Review
o Comprehensive case study integrating all concepts (investment decision,
financing, risk).
o Final review and Q&A session before the exam.
7. Required Readings & Materials
Main Reference (Optional): Berk, J., & DeMarzo, P. (2019). Corporate Finance (5th
Global ed.). Pearson. (Chapters will be indicated for each session).
A course pack of lecture slides, exercises, and case studies will be provided to all
students before the start of the course.
