COURSE INFORMATION Course Title: INTRODUCTION TO FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 104	B	2	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Armanda Tola atola@epoka.edu.al , Thursdays (09:30 - 12:00)
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time:	Fridays, E-B31
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
Course Description:	Primary emphasis is given on financial markets and tools and skills required to understand how those markets work. Finance and the role of financial system (including banks, other financial intermediaries and central bank) to the nation’s economy will be also discussed. Investment is another important discipline, which will be thoroughly discussed. Savings, interest rates and the flow of funds will be of special importance.
Course Objectives:	To equip the students with the foundations of knowledge that relate to finance; financial markets; investment instruments and evaluation of their performance.

BASIC CONCEPTS OF THE COURSE

1	Finance system
2	Interest rate
3	Financial instrument
4	Investments
5	Time value of money
6	Equities
7	Bonds

COURSE OUTLINE

Week	Topics
1	Introduction of syllabus, Introduction of study materials (Book), Evaluation Method, Brief Presentation on Key Issues
2	CHAPTER 1 (An Introduction to Finance)- The objectives of this chapter are: To define finance as a science and its importance related with other fields. To describe the role of finance in business. To distinguish among the different legal forms of business organization. To know the main fields of finance as a science.
3	CHAPTER 2 (The Financial Markets and Intermediaries)- The objectives of this chapter are: To understand the financial system and its components. To know the role of financial intermediaries and the types of financial markets. To describe the movement of funds through the economy. To understand how funds are raised in the capital markets. To understand the rate of return and the fundamentals of interest rate determination.
4	CHAPTER 3 (Understanding Financial Statements and Cash Flows) - The objectives of this chapter is to know the financial statements of a firm and their purpose. Students will learn on hoe to compute a company’s profits, as reflected by its income statement. They will learn to determine a firm’s financial position at a point in time based on its balance sheet.
5	QUIZ NR:1 + Class Discussion on Quiz Solutions
6	CHAPTER 4 (Evaluating a Firm’s Financial Performance) The objective of the chapter is to understand the financial indicators of the firm. Students will learn to measure a company’s cash flows. They will learn on how to compute taxable income and income taxes owed. The students will describe the limitations of financial statements and to calculate a firm’s free cash flows and financing cash flows.
7	MIDTERM EXAM (PAPER-BASED)
8	CHAPTER 5 (The Time Value of Money) - The learning objectives of this chapter are: Explain the mechanics of compounding and bringing the value of money back to the present. Understand annuities. Determine the future or present value of a sum when there are nonannual compounding periods. Determine the present value of an uneven stream of payments and understand perpetuities.
9	CHAPTER 6 (The Meaning and Measurement of Risk and Return)- The learning objectives of this chapter are: Define and measure the expected rate of return of an individual investment. Define and measure the riskiness of an individual investment. Explain the relationship between an investor’s required rate of return on an investment and the riskiness of the investment.
10	CHAPTER 7 (The Valuation and Characteristics of Bonds) - The lerning objectives of this chapter are: Distinguish between different kinds of bonds. Explain the factors that determine value of bonds. Describe the basic process for valuing assets.
11	CHAPTER 8 (The Valuation and Characteristics of Stock) - The learning Objectives of this chapter are: Identify the basic characteristics of preferred stock and its value. Identify the basic characteristics of common stock. To value common stock. Calculate a stock’s expected rate of return.
12	QUIZ NR:2 + Class Discussion on Quiz Solutions
13	CHAPTER 9 (The Cost of Capital) - The learning objectives of this chapter are: Understand the concepts underlying the firm’s cost of capital. Evaluate the costs of the individual sources of capital. Calculate a firm’s weighted average cost of capital. Estimate divisional costs of capital.
14	REVISION (Discussion on Various Theoretical and Practical Questions)

Prerequisite(s):	NA
Textbook(s):	Introduction to Finance, Pearson (9th Edition)
Additional Literature:	PAMELA PETERSON DRAKE, FRANK J. FABOZZI, Basics of Finance
Laboratory Work:	No
Computer Usage:	Yes
Others:	No

COURSE LEARNING OUTCOMES

1	Students are able to evaluate various investment instruments and to make well-informed choices based on the respective returns.
2	Students are able to analyze financial information and to reflect on the data shown on the financial statements.
3	Students are able to reflect on specific characteristics of debt and equity financing as well as pro-s and con-s of each
4	Students are able to fully understand the time value of money and to correctly apply various valuation methods
5	Students have gained understanding of the relationship between risk and return
6	Students understand and apply properly the decision making criteria

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	4
2	They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	4
3	They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.	4
4	They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.	4
5	They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.	4
6	They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.	4
7	They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.	4
8	They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.	4
9	They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.	4
10	They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Quiz	2	10
Final Exam	1	40
Other	1	10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	9	9
Assignments			0
Final examination	1	10	10
Other	1	10	10
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

This course is specifically designed to provide knowledge related to the fundamentals of finance.