Course detail

Financial Management

FP-PfmKAcad. year: 2011/2012

Financial goals and financial management principles. Strategic financial decision making – issue of shares, issue of bonds, venture capital, capital structure decisions and dividend policy. Strategic investment decision making – consideration of risk in investment decision making, investment portfolio. Mergers and acquisitions, company market value estimates. Contents and methods of financial planning. Capital budgeting. Liquidity management – net working capital, credit management, cash management, foreign exchange risk management.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Mária Režňáková, CSc.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

After completion of the course, student is able:
- to define company tasks and goals according to business life cycle;
- to decide on suitability of stock issues for business financing;
- to communicate with company investors, including venture capital funds;
- to decide, whether to own or to lease assets;
- to apply company valuation methods;
- to characterize content of business plan and methods of its creating, as well as to create financial sub-plans;
- to quantify optimal level of net working capital;
- to decide on making and accepting commercial loans;
- to understand risks of financial and investment decision making and to know ways how to consider and minimize them.
- to know short-term liquidity management tools.

Prerequisites

Successful completion of the course is conditional on the knowledge of accounting, banking, financial mathematics and business economics. Students are also expected to be able to make company financial analysis.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

CREDIT REQUIREMENTS: pass out each of two tests.
At least 50 % points for each part of the test.


EXAM REQUIREMENTS:
The exam has written part, eventually oral part and is orientated to verify theoretical knowledge and its’ practical application. For the final classification is credit classification directive.

To pass the exam, student needs to have a course-unit credit awarded, together with knowledge of taught problems and their applicability in practice.
Way of examination: the exam has a written part only. Written part is oriented to theoretical and practical problems solving. The final classification is done according to Rules for Study and Examination of Brno University of Technology. The exam can be supplemented by an oral part.

Course curriculum

Not applicable.

Work placements

Not applicable.

Aims

The aim of the subject is to make students familiar with company financial management problems with stress on effective fund raising and capital investing. From this point of view:
- to present principles of decision-making about utilization of company financial resources;
- to introduce procedures for the evaluation of mergers, acquisitions, and for the financial restructuring of company;
- to give consideration to financial planning issues including risk analysis;
- to address a problem of company liquidity management.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

REŽŇÁKOVÁ, M. a kol. Řízení platební schopnosti podniku. Praha: Grada, 2010. 200 s. ISBN ISBN 978-80-247-3441-5 (CS)
KISLINGEROVÁ, E. a kol. Manažerské finance. 2. přeprac. a rozš. vyd. Praha: C. H. Beck, 2007. 745 s. ISBN 978-80-7179-903-0. (CS)
NÝVLTOVÁ, R. REŽŇÁKOVÁ, M. Mezinárodní kapitálové trhy: zdroj financování. Praha: Grada, 2007. 222 s. ISBN 978-80-247-1922-1. (CS)
MAŘÍK, M. MAŘÍKOVÁ, P. Moderní metody hodnocení výkonnosti a oceňování podniku: ekonomická přidaná hodnota, tržní přidaná hodnota, CF ROI. Přeprac a rozš. vyd. Praha: Ekopress, 2005. 164 s. ISBN 80-86119-61-0. (CS)
VALACH, J. Investiční rozhodování a dlouhodobé financování. 2. přeprac. vyd. Praha: Ekopress, 2005. 465 s. ISBN 80-86929-01-9. (CS)
BREALEY, R.A. a MYERS, C.S. Teorie a praxe firemních financí. Praha: Computer Press, 2000. 1064 s. ISBN 80-7226-189-4. (CS)
FOTR, J. Strategické finanční plánování. Praha: Grada Publishing, 1999. 149 s. ISBN 80-7169-694-3. (CS)

Recommended reading

REŽŇÁKOVÁ, M. Finanční management, I. část. CERM: 2005, 125 s. ISBN 80-214-3035-4 (CS)
REŽŇÁKOVÁ,, M. Finanční management, II. část. CERM, 2005, 120 s. ISBN 80-214-3036-2. (CS)

Classification of course in study plans

  • Programme MGR-KS Master's

    branch MGR-PFO-KS , 1. year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

prof. Ing. Mária Režňáková, CSc.

Syllabus

1. Company financial management. Aspects of strategic financial management. Content of financial management during different business life cycle phases.
2. Company financial goals. Economic Value Added.
3. Financing strategy. Cost criteria for issue of stocks and bonds. Pre-emption rights to buy the shares.
4. Company capital structure optimalization. Indifferent capital structure. Marginal capital cost.
5. Financing strategy. Market company valuation.
6. Capital planning – planning of incomes and expenses of investment projects.
7. Methods for investment projects assessment – their utilization and risks.
8. Approaches to discount rate determination. Risk in investment decisions and its diversification.
9. Company liquidity management. Net working capital management.
10. Credit management. Discount.
11. Cash management. Foreign exchange risk management.
12. Test