Financial Management

Prerequisite:

Accounting (16ERU)

The course is a substitute for:

Financial Management (X16FIM)

Lecturer:

Tutor:

Supervisor:

Department of Economics, Management and Humanities

Synopsis:

Principles of finance, present value and alternative cost of capital, net present value, valuation of bonds and stocks, investment decision and net present value, risk and alternative cost of capital, risk and return, lease or buy, taxes, inflation and return, financial and real options, option valuation and application, hedging, short term finance, cash flow management.

Requirements:

Syllabus of lectures:

1. Introduction of finance, present value, opportunity cost

2. Anuitty, perpetuitty, compounded and simple interests

3. Long term finance. Stock and bonds price

4. Short term finance. Promissory notes, invoices and payment conditions

5. Investment efficiency evaluation techniques. IRR, NPV

6. Decision making with NPV

7. Inflation and tax influence to investment decision

8. Project is not black box

9. Capital assets pricing model. Basics of portfolio theory

10. Capital markets models

11. Analysis of senzitivity and risk analysis. Financial risk

12. Options, hedge position, option valuation

13. Short term financial plans and decison making

14. Other financial problems

Syllabus of tutorials:

1. Spreadsheets revision focused on financial management

2. Financial calculus

3. Loans. Kinds of interests

4. Depreciation. Tax shield. Homework assignment

5. NPV and IRR calculations. Mutual eliminate investments

6. Taxes, finance and NPV

7. Inflation influence. Case study

8. Bonds and stock price. Model with contant growth

9. Expected return and standart deviation of portfolio. Risk free return

10. Market portfolio. Securities line. Portfolio with maximal return

11. Reading of finacial news

12. Quiz. Homework deadline

13. Homework discussion

14. Put and call options

Study Objective:

Study materials:

[1] Brealey, R.A., Myers, S.C.: Principles of Corporate Finance. McGraw-Hill, 1991

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• Ekonomika a řízení elektrotechniky a energetiky-inženýrský blok (compulsory course)
• Ekonomika a řízení elektrotechniky a energetiky-inženýrský blok (compulsory course)