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GEST-S318

Introduction to theoretical finance

academic year
2025-2026

Course teacher(s)

Laurent GHEERAERT (Coordinator)

ECTS credits

5

Language(s) of instruction

english

Course content

1.Introduction – What is finance? – Basics of accounting

2.From Accounting to Finance – Free Cash Flows and financial planning

3.Present Value – Interest rates and time value of money

4.Bond valuation

5.Project decision making (capital budgeting)

6.Equity valuation

7.Expected return & risk – Efficient Market Hypothesis and Portfolio theory

8.Expected return & risk – Capital Asset Pricing Model (CAPM)

9.Introduction to Financial Structure and Company Valuation (time allowing)

Objectives (and/or specific learning outcomes)

The objective of the course is to equip students with a strong theoretical and practical command of cornerstone concepts of modern finance, in particular discounting, value creation, investment decision making, and portfolio diversification.

At the end of the course, students will be able to use and apply the concepts studied to financial decision making, in both personal and corporate finance contexts.

Teaching methods and learning activities

The theoretical course consists of lectures (presentation of the concepts and tools of modern finance) including practical examples aimed at actively engaging students (presentation and resolution of mini-cases, theoretical reminders).

The practical work offers a series of concrete exercises and mini-cases (“short business cases”).

Students will carry out a project based on a concrete issue in corporate finance or financial markets.

References, bibliography, and recommended reading

Berk, J. & DeMarzo, P. (2023). Corporate Finance (6th edition). Pearson Education Limited (ISBN 978-1292446318, 1200 pages).

For those who wish to refine their knowledge of accounting:

Cerrada, K., De Rongé, Y., De Wolf, M. et Gheeraert, L. (2024). Comptabilité, cash flows et durabilité. 4ème édition. De Boeck Supérieur (ISBN 978-2-8073-4343-6, 540 pages).

Gheeraert, L., Cerrada, K., De Rongé, Y., De Wolf, M. (2025). PCMN. Edition 2025. Edi.Pro (ISBN 978-2-874-965040-1, 14 pages).

Contribution to the teaching profile

LO 1.2 Master and apply key economic and management concepts, frameworks and theories in a professional context to identify a business opportunity and create a relevant innovative solution for it
LO 1.3 Embed scientific and technological processes to formulate a business issue into a well-defined problem and propose a solution
LO 1.4 Translate a strategy into an actionable plan including the financial implications of the project
LO 2.1 Adopt a scientific approach to data collection, research and analysis and communicate results using clear, structured and sophisticated arguments
LO 2.2 Display critical thinking and develop autonomous learning strategies and techniques
LO 3.1 Apply quantitative and qualitative techniques to support data analysis using standard office and statistical software
LO 4.1 Work and communicate effectively as part of a team in an international and multicultural environment
LO 4.2 Demonstrate a strong work ethic to foster a socially responsible behaviour in the workplace

Other information

Campus

Solbosch

Evaluation

Method(s) of evaluation

  • Other

Other

  1. Final exam (theory and exercises)
  2. Case (group work)
  3. Preparation of lectures (theoretical reminders) and exercises (group work)

Mark calculation method (including weighting of intermediary marks)

  1. Final exam (individual grade, weight of 70% if the final exam grade is ≥ 8/20, otherwise weight of 100%)
  2. Case (group grade, weight of 20% only if the final exam grade is ≥ 8/20, otherwise weight of 0%)
  3. Preparation of lectures (theoretical reminders) and exercises (group grade, weight of 10% only if the final exam grade is ≥ 8/20, otherwise weight of 0%)

Language(s) of evaluation

  • english

Programmes