Financial Management

Lecturer:

Oldřich Starý (gar.), Martin Beneš, Mirza Karajica

Tutor:

Oldřich Starý (gar.), Martin Beneš, Mirza Karajica

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.Annuity, perpetuity, 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 sensitivity and risk analysis. Financial risk.

12.Options, hedge position, option valuation.

13.Short term financial plans and decision 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 constant growth.

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

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

11.Reading of financial 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. 2007

2.Bodie, Z., Kane, A., Marcus, A.J.: Investments. McGraw-Hill/Irwin. 2006

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
Fri	roomZ2:B1-233 Karajica M. 14:30–16:00 (lecture parallel1 parallel nr.1) Zikova ulice Terminálová učebnaroomZ2:B1-233 Karajica M. 16:15–17:45 (lecture parallel1 parallel nr.2) Zikova ulice Terminálová učebna
Thu	roomT2:D3-309 Starý O. 12:45–14:15 (lecture parallel1) Dejvice Posluchárna
Fri

The course is a part of the following study plans:

• Elektrotechnika, energetika a management - Ekonomika a řízení energetiky (compulsory course in the program)
• Elektrotechnika, energetika a management - Ekonomika a řízení elektrotechniky (compulsory course in the program)