Financial Management

The course is a substitute for:

Financial Management (16FIM)

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. Investment efficiency evaluation techniques. IRR, NPV.

5. The comparing period, an equivalent annual value.

6. Decision making with NPV.

7. Inflation and tax influence to investment decision.

8. Project is not a 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

2. Sharpe, W.F., Alexander G.J.: Investments. USA: Prentice-Hall, Inc. 1990

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• Computer Technology - Software Engineering- structured studies (compulsory elective course)
• Telecommunications and Radio-engineering - High-frequency and Microwave Technology- structured studi (compulsory elective course, elective specialized course)
• Heavy-current Engineering - Technological Systems- structured studies (compulsory elective course, elective specialized course)
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• Electronics - Electronic Systems- structured studies (compulsory elective course, elective specialized course)
• Economics and Management of Power Engineering- structured studies (compulsory course, elective specialized course)
• Biomedical Engineering- structured studies (elective specialized course)
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• Electronics - Electronic Applications- structured studies (compulsory elective course, elective specialized course)
• Electronics - Electronics and Photonics- structured studies (compulsory elective course, elective specialized course)
• Cybernetics and Measurements - Artificial Intelligence- structured studies (compulsory elective course, elective specialized course)
• Cybernetics and Measurements - Measurement and Instrumentation Systems- structured studies (compulsory elective course, elective specialized course)
• Cybernetics and Measurements - Aeronautical Engineering and Control Systems- structured studies (compulsory elective course, elective specialized course)
• Heavy-current Engineering - Electric Drives- structured studies (compulsory elective course, elective specialized course)
• Heavy-current Engineering - Electroenergetics- structured studies (compulsory elective course, elective specialized course)
• Heavy-current Engineering - Electrical Engineering Applications- structured studies (compulsory elective course, elective specialized course)
• Telecommunications and Radio-engineering - Opto-electric Systems- structured studies (compulsory elective course, elective specialized course)
• Telecommunications and Radio-engineering - Radio Communications, Navigation and Radar Systems- struc (compulsory elective course, elective specialized course)
• Telecommunications and Radio-engineering - Multimedia, Sound and Television Technology- structured s (compulsory elective course, elective specialized course)
• Telecommunications and Radio-engineering - Telecommunications- structured studies (compulsory elective course, elective specialized course)
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• Computer Technology - New - Software Engineering- structured studies (compulsory elective course)
• Computer Technology - New - Computer Network and Internet- structured studies (compulsory elective course)