Making Investment Decisions: a particular focus on East-Central Europe

About

„Taking investment decisions is one of the key challenges of any top manager. This course will give you an insight into the theory and praxis of choosing the right strategic option while you may also gain a better understanding of the Microsoft Excel features supporting these kinds of tasks. When building financial models, we give special emphasis to issues like shortage of financing sources or inflation and currency risk typical for the CEE region and most of the emerging countries.”

Introduction to finance
o Investments, rate of return, time value of money, accounting profit vs cash flows
- Forecasting Performance
o Balance sheet, Profit/Loss forecast, cash flow forecast
- Financial modelling for projects and companies
o Choosing from strategic options
o Taking financing decisions
o Estimating the cost of capital
o Challenges of growth and inflation
o Addressing interest rate and currency risks in financial models
o Scenario analysis and Decision trees
o Stress testing: sensitivity analysis, Monte Carlo simulation
- Corporate valuation using the DCF method
o Case 1. Database: Bloomberg
- How to finance your corporation?
o Case 2. Database: Bloomberg
- Corporate valuation by multiples
o Case 3. Database: Bloomberg
- Investment decisions
o Case 4. Investment optimisation using different investment criteria
- Financial modelling for portfolios
o Portfolio from two and more assets, the CAPM model
- Hedging the corporate risk
o Case 5. Exchange rate risk
- Issuing stocks
o Game A
- Valuation for M&As
o Case 6. – Database: Bloomberg
- Asymmetric information on financial markets
o Game B
- Portfolio building from stocks listed on stock markets of Central Eastern Europe
o using database Bloomberg
- Stock market game
Game C

Course leader

Gergely Fazakas and Peter Juhasz

Course aim

Gained knowledge: Understanding the structure of the main Financial Statements. Understanding the main Investment and Financing decisions.
- Acquired skills: To be able to evaluate single financial assets, transactions, firms.
- Gained attitudes: To get a solid background for the valuation of different financial, and get the point of view of Present Value method.

Fee info