Financial Management
| Code | Completion | Credits | Range | Language |
|---|---|---|---|---|
| BE1M16FIM1 | Z,ZK | 5 | 2P+2S | English |
- Garant předmětu:
- Oldřich Starý
- Lecturer:
- Július Bemš, Oldřich Starý
- Tutor:
- Daniel Běhal, Július Bemš, David Kecek
- 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, IRR, comparing period, equivalent annual value.
2. Inflation, elasticity and decision making trees
3. Revenues, risk, basics of portfolio theory.
4. CAPM
5. Definition of beta coefficient
6. Price model evaluation, stock and bonds price.
7. Options, hedge position, option valuation.
8. Option valuation, parity of buy/sell option, Black-Scholes formula.
9. Real option. timed and securited options
10. Durace, volatility.
11. Hedging, futures.
12. Term contracts and swao contracts
13. Analysis of sensitivity and risk analysis. Financial risk.
14. Summary, reserve
- 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., Myers S., Allen F.: Principles of Corporate Finance, McGraw-Hill/Irwin; 11 edition (January 15, 2013)
2.Bodie, Z., Kane, A., Marcus, A.J.: Investments. McGraw-Hill/Irwin. 2006
3.Arnold T.: A Pragmatic Guide to Real Options, Palgrave Macmillan, 2014
- Note:
- Further information:
- https://moodle.fel.cvut.cz/divize/13116/Katedra_ekonomiky__manazerstvi_a_humanitnich_ved
- Time-table for winter semester 2023/2024:
- Time-table is not available yet
- Time-table for summer semester 2023/2024:
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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 Wed Thu Fri - The course is a part of the following study plans:
-
- Electrical Engineering, Power Engineering and Management - Management of Power Eng. and Electr. (compulsory course of the branch)