Corporate finance

Lecturer:

Martin Beneš (gar.)

Tutor:

Martin Beneš (gar.)

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, WACC.

Requirements:

https://ekonom.feld.cvut.cz/web/index.php?option=com_content&task=section&id=7&Itemid=236

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.Complex financian evaluation.

6.The comparison period, an equivalent annual value.

7.Decision making with NPV.

8.Inflation and tax influence to 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.Discount rate, debt, taxes, WACC.

13.Other financial problems.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.Complex case of multiple variant evaluation.

9.Bonds and stock price. Model with contant growth.

10.Expected return and standart deviation of portfolio.

11.Risk free return. Market portfolio. Securities market line.

12.Discount rate - debt, taxes, WACC

13.Assestment. Reserve.

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	roomZ2:B1-231 Beneš M. 12:45–14:15 (lecture parallel1) Zikova ulice Ucebna K316roomZ2:B1-231 Beneš M. 14:30–16:00 (parallel nr.1) Zikova ulice Ucebna K316
Fri
Thu
Fri

The course is a part of the following study plans: