Corporate Finance

Corequisite:

Accounting (Y16UCE)

The course cannot be taken simultaneously with:

Corporate Finance (A7B16UFI)

Lecturer:

Oldřich Starý (gar.), Jiří Vašíček

Tutor:

Oldřich Starý (gar.), Josef Černohous, Jiří Vašíček

Supervisor:

Department of Economics, Management and Humanities

Synopsis:

Principles of finance, present value and alternative cost of capital, financial calculus, long-term finance, valuation of bonds and stocks, investment decision and net present value, IRR, comparison time period, annual equivalent value, inflation and return, capital asset pricing model, portfolio, sensitivity analysis and risk, short term finance, cash flow management.

Requirements:

Syllabus of lectures:

1.Introduction of finance, present value, opportunity cost.

2.Anuity, perpetuity, compound and simple interests.

3.Long term finance. Stock and bonds prices.

4.Investment efficiency evaluation techniques. IRR, NPV.

5.Complex financial evaluation.

6.The comparison period, an equivalent annual value.

7.Decision making with NPV.

8.Inflation and tax influence on investment decision.

9.Project is not a black box.

10.Capital assets pricing model. Introduction to the theory of portfolio.

11.Sensitivity and risk analysis. Financial risk.

12.Short term financial plans and decison making.

13.Other financial problems.

14.Reserve.

Syllabus of tutorials:

1.Introduction of spreadsheets use focused on financial management.

2.Financial calculus.

3.Loans. Kinds of interests calculation.

4.Depreciation. Tax shield. Group project assignment.

5.NPV and IRR calculations. Mutually exclusive investments.

6.Taxes, finance and NPV.

7.Comparison period. Complex projects.

8.Bonds and stock prices. Model with constant growth.

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

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

11.Reading of finacial news.

12.Test. Group project deadline.

13.Project presentation.

14.Assesment. Consultation.

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:

Time-table for winter semester 2011/2012:

Time-table is not available yet

Time-table for summer semester 2011/2012:

	06:00–08:0008:00–10:0010:00–12:0012:00–14:0014:00–16:0016:00–18:0018:00–20:0020:00–22:0022:00–24:00
Mon
Tue	roomT2:C3-132 Starý O. 14:30–16:00 (lecture parallel1) Dejvice Posluchárna
Fri
Thu	roomZ2:B1-231 09:15–10:45 (lecture parallel1 parallel nr.101) Zikova ulice Ucebna K316roomZ2:B1-231 11:00–12:30 (lecture parallel1 parallel nr.102) Zikova ulice Ucebna K316
Fri

The course is a part of the following study plans:

• Manažerská informatika (compulsory course)