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Course Syllabus

Master 2018/2019

Investment Analysis

Type: Elective course (Finance)
Area of studies: Finance and Credit
Delivered by: Department of Finance
Where: St.Petersburg School of Economics and Management
When: 1 year, 3, 4 module
Mode of studies: offline
Instructors: Ivan D. Kotliarov
Master’s programme: Finance
Language: English
ECTS credits: 5
Contact hours: 56

Course Syllabus

Full Syllabus

Abstract

The course aims at understanding of investment process. It means that the students will learn not only the technical basis of investment analysis, but also the final goal of investments – increase of value for investors, owners and shareholders. A major problem to be addressed is how investors select investment projects and methods of financing in order to ensure the maximum increase of value. The course consists of lectures (28 hours) and tutorials (28 hours). The tutorials involve student presentations (in small groups), problems solving, case analysis and the individual assignment (project).
Learning Objectives

Learning Objectives

  • To make students acquainted with main tools of investment analysis, including (but not limited to): 1. How to analyze present and future cash flows? 2. How to calculate different investment indexes (for standard and non-standard investment projects)? 3. How to use different methods of evaluation and elimination of risks? 4. How to prepare corporate investment strategy? 5. How to use mathematical models to build up an optimal set of investment projects? 6. How to finance investment projects?
Expected Learning Outcomes

Expected Learning Outcomes

  • Students have knowledge of basic theoretical aspects of investment analysis (understanding of the economic nature of investments, time value of money, risk, key players of the investment process).
  • Students have ability to find, produce and analyze economic and financial information necessary for evaluation of investment projects (information about expected cash flows etc, including business planning).
  • Students are able to find necessary information and analyze levels of risks of the project, possible guarantees etc
  • Students have skills of taking decisions about selection of sources of finance depending on the nature of the project.
  • Students have skills of taking investment decisions (positive and negative decisions about investments into a project, selection of portfolio of investments etc.)
Course Contents

Course Contents

  • Topic 1. Introduction into theory of investment analysis
    Why Do Individuals and Companies Invest? The nature of Investment Analysis. The Rate of Return On An Investment. Defining an Investment. Determinants of Required Rates of Returns. Holding Period Return. Holding Period Yield. Measures of Rates of Return. Expected Rates of Return. Adjusting for Inflation.
  • Topic 2. Evaluation of investment projects
    Investment Indices. Discounted Payback Period. Net Present Value. Profitability Index. Internal Rate of Return.
  • Topic 3. Uncertainty and risk: assessment and elimination
    Non-conventional Projects. Differentiated Projects. Projects with Different Period of Activity. Substitution of Projects. Projects with Non-corresponding Periods.
  • Topic 4. Sources of finance
    Characteristics of Sources of Investments. Classification of Sources of Finance. Selection of Sources of Capital. Main Sources of Finance. Main Sources of Capital. Own resources. Bank Credit. Initial Public Offer. Bond Issuance. Leasing. Venture Finance and Investors. Project Finance.
  • Topic 5. Investor strategy
    Multi-criteria Selection of Investments Projects. Effectiveness. Integral Effectiveness of a Project. Transformation of Real Values. Final Evaluation.
Assessment Elements

Assessment Elements

  • non-blocking Written examination
  • non-blocking In-class participation
  • non-blocking Written test
  • non-blocking Team project
  • non-blocking Individual assignment
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.05 * In-class participation + 0.15 * Individual assignment + 0.2 * Team project + 0.5 * Written examination + 0.1 * Written test
Bibliography

Bibliography

Recommended Core Bibliography

  • Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925

Recommended Additional Bibliography

  • Strategic Investment: Real Options and Games. (2004). Princeton University Press, Princeton NJ. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.repub.eur.nl.12234