Mail: ef@unze.ba / Phone: (+387 32) 460 467, 460 444

Models in financial management

Study: Second cycle

Semester: First semester

Professor: Prof. Ph.D. sc. Nedžad Polić

Section:      Business and public finance

ECTS:          7,5

Exam results

Course content

BUSINESS FINANCE MANAGEMENT MODELS

  1. Basics of business finance modeling;
  2. Modeling the cost of capital;
  3. Financial reporting models;
  4. Valuation models;
  5. Modigliani-Miller model;

PORTFOLIO MODELS

  1. Introduction;
  2. CAPM and market line investment advanced stage;
  3. Price arbitrage model;
  4. Black-Litterman approach;
  5. Fana-French three-factor model;

OPTION PRICING MODELS

  1. Binomial;
  2. Lognormal;
  3. Black Scholes;
  4. Monte Carlo Simulation Model

BONDS

  1. Duration models;
  2. Immunization models;
  3. Models of term structures;

VaR MODEL of risk management

Objective of the course

Understanding and applying application models in financial management. Understanding and importance of the modeling process in increasing the efficiency and quality of business decision-making in the domain of business finance management in general.

 

Teaching methods

  1. Ex chair – 50%;
  2. Presentations of team works – 20%;
  3. Case Studies – 30%.
 

Knowledge testing methods

  • Entrance paper - condition for taking the comprehensive exam - 20%
  • Comprehensive exam (written/oral) – 80%
 

Competences

During studies and study of the subject Models in financial management, students of the II cycle of studies would master the models that are applied in certain areas of financial management with the aim of making optimal decisions in the given business environment. In this way, the student should become familiar with the models that are applied in the processes of valuation, investment management, management of business assets and company liabilities, which represents a significant upgrade of knowledge acquired in the field of financial management in undergraduate studies. In the field of scientific research, students should master the knowledge and skills necessary to identify the areas and modalities of research in the domain of enterprise resource management, the aspect of financing business assets, and optimal management of enterprise assets and liabilities. Students who master the offered knowledge should be trained for operational and strategic actions in the business environment in the domain of the use of financial management models, as well as the scientific-research aspect of the treatment of the subject areas. The exiting competencies of students who leave the study programs and discipline Models in financial management are related for the processes of managing valuation processes, investments, working capital, financing with the use of modern models that try to capture the complex reality in which companies operate with proven models. Also, the competencies will include the possibility of scientifically based processing of various scientific and research challenges related to the general coverage of financial management at the company level.

 

Literature

Mandatory

  1. Benninga, S. (2008): Financial Modeling, third edition, MIT Press, Massachusetts Institute of Technology.

Additional

  1. Ehrhardt, CM, Brigham, FE (2011): Financial Management, theory and practice, thirteenth edition, South-Western Cengage Learning, Mason, USA.
  2. Polić, N., Serdarević, N. (2012): Practical aspects of financial management, University of Zenica, Faculty of Economics.
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