Course detail
Financial Management
FP-RfmPAcad. year: 2017/2018
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. Contents and methods of financial planning. Capital budgeting. Liquidity management – net working capital, credit management, cash management, foreign exchange risk management.
Language of instruction
Number of ECTS credits
Mode of study
Guarantor
Department
Learning outcomes of the course unit
- 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 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
Co-requisites
Planned learning activities and teaching methods
Assesment methods and criteria linked to learning outcomes
Successful completion of each of the tests including the final one. All according to the time plan published in the news of the subject. For the successful completion test is considered a test in which the student reaches at least 50 % of points. This assessment can not be repaired.
In case that students reaches at least 85 % of all point at the first try, he may apply to register the classification of the course E without the participation at the exam test.
EXAM:
Course and evaluation of the exam:
The exam is written and focuses on the evaluation of student's ability to solve typical examples and the check of his theoretical knowledge. The classification obeys the Study and examination rules of BUT, i.e. for the successful passing of the exam is necessary to reach at least 50% of all points. The overall subject classification is based on the results gained during the semester and at the exam, each part (seminar results, written exam) has weight of 50%.
Course curriculum
2. Company financial goals. Economic Value Added.
3. Financing strategy – Equity financing (internal, external – stocks issue: capital market, types of stocks and related rights).
4. Financing strategy – Equity financing (external – stocks issue: increasing of owner's equity, venture capital).
5. Financing strategy – Debt capital (bonds, bank loan).
6. Financing strategy – Debt capital (leasing). Costs of capital and their utilization in financial decision making.
7. Financing strategy – Company capital structure optimalization. Company dividend policy.
8. Market company valuation. Strategic company valuation. Financial Planning.
9. Investment strategy – types of investment strategy. Capital Planning. Risks in investment projects.
10. Company liquidity management. Net working capital management
11. Credit management. Discount.
12. Cash management.
13. Foreign exchange risk management.
Work placements
Aims
- to present principles of decision-making about utilization of company financial resources;
- 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
Recommended optional programme components
Prerequisites and corequisites
Basic literature
BRIGHAM, E. F. & EHRHARDT, M. C. Financial Management: Theory and Practice, 2011, 1152 s. ISBN 978-1-4390-7809-9
FOTR, J. Strategické finanční plánování. Praha: Grada Publishing, 1999. 149 s. ISBN 80-7169-694-3.
KISLINGEROVÁ, E. a kol. Manažerské finance. 2. přeprac. a rozš. vyd. Praha: C. H. Beck, 2007. 745 s. ISBN 978-80-7179-903-0.
KRAĽOVIČ, J., VLACHYNSKÝ, K. Finančný manažment. Bratislava: Iura Edition. 2006, ISBN 978-80-8078-042-0
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.
NÝVLTOVÁ, R. REŽŇÁKOVÁ, M. Mezinárodní kapitálové trhy: zdroj financování. Praha: Grada, 2007. 222 s. ISBN 978-80-247-1922-1.
REŽŇÁKOVÁ, M. a kol. Řízení platební schopnosti podniku. Praha: Grada, 2010. 200 s. ISBN ISBN 978-80-247-3441-5
REŽŇÁKOVÁ, M. Efektivní financování rozvoje podnikání. Praha: Grada, 2012. ISBN 978-80-247-1835-9
VALACH, J. Investiční rozhodování a dlouhodobé financování. 2. přeprac. vyd. Praha: Ekopress, 2005. 465 s. ISBN 80-86929-01-9.
Recommended reading
REŽŇÁKOVÁ, M. a kol. Řízení platební schopnosti podniku. Praha: Grada, 2010. 200 s. ISBN ISBN 978-80-247-3441-5 (CS)
REŽŇÁKOVÁ, M. Efektivní financování rozvoje podnikání. Praha: Grada, 2012. ISBN 978-80-247-1835-9 (CS)
REŽŇÁKOVÁ, M. Finanční management: studijní text pro kombinovanou formu studia. 1. díl. 3 akutaliz a rozš. vyd., Brno: CERM, 2005. 125 s. (CS)
REŽŇÁKOVÁ, M. Finanční management: studijní text pro kombinovanou formu studia. 2. díl. 3. aktualiz. a rozš. vyd. Brno: CERM, 2005. 125 s. (CS)
Type of course unit
Lecture
Teacher / Lecturer
Syllabus
2. Company financial goals. Economic Value Added.
3. Financing strategy – Equity financing (internal, external – stocks issue: capital market, types of stocks and related rights).
4. Financing strategy – Equity financing (external – stocks issue: increasing of owner's equity, venture capital).
5. Financing strategy – Debt capital (bonds, bank loan).
6. Financing strategy – Debt capital (leasing). Costs of capital and their utilization in financial decision making.
7. Financing strategy – Company capital structure optimalization. Company dividend policy.
8. Financial Planning.
9. Investment strategy – types of investment strategy. Capital Planning. Risks in investment projects.
10. Company liquidity management. Net working capital management
11. Credit management. Discount.
12. Cash management.
13. Foreign exchange risk management.
Exercise
Teacher / Lecturer
Syllabus
1. Cash Flow.
2. Dynamic decomposition of ROE indicator, using several approaches
3. Composition of the financial plan
4. The EVA calculation based on the company's financial statements
5. Short test. Calculation of the cost of equity by using several approaches
6. Cost of debt capital
7. WACC and its application
8. Investment cash flow planning and assessment methods application
9. Short test. Risk in investment decision making
10. NWC management
11. Foreign exchange rate risk hedging
12. Reserve