Course detail

Finance and Accounting for Business Strategy

FP-EfabsPDAcad. year: 2018/2019

The financial environment
The financial statements of corporations. Interpretation of financial statement and limitations of such interpretation
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.
Financial planning. Capital budgeting.
Net working capital, credit management, cash management

Language of instruction

English

Number of ECTS credits

8

Mode of study

Not applicable.

Guarantor

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

a) Explain key accounting and finance theories, with supporting calculations and using seminal research
b) Summarise a range of possible outcomes and recommendations within simulated and real life business contexts
c) Extract, interpret and analyse real financial data and information, and discuss the implications of the analysis
d) Critically evaluate sources of the above data and information regarding their relevance and reliability
e) Communicate effectively by written means to a business audience
f) Decide on suitability of financial resources for business financing
g) Communicate with company investors

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

The course is focused on the explanation of the main principles and presentation of the decision problems as well solution of model situation.

Assesment methods and criteria linked to learning outcomes

Module will be evaluated on the basis of:
I. Final Exam - 50% of final grade (the comprehensive final exam covering the entire module)
II. Presentation of Papers - 50% of final grade (The short papers will be written in English. They will regard different topics related to the module material.)

Course curriculum

The financial environment
The financial statements of corporations. Interpretation of financial statement and limitations of such interpretation
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.
Financial planning. Capital budgeting.
Net working capital, credit management, cash management
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.

Work placements

Not applicable.

Aims

To help students to gain a thorough understanding of how accounting and finance information can be used in corporate analysis, control and strategic decision-making.
- 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

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Atrill, P. & McLaney, E., (2004) Accounting and Finance for Non-Specialists, 4, Prentice Hall, Harlow (EN)
BRIGHAM, E. F. & EHRHARDT, M. C. Financial Management: Theory and Practice, 2011, 1152 s. ISBN 978-1-4390-7809-9 (EN)
DAMODARAN, A. Applied corporate finance: a user´s manual. 2nd ed. Hoboken: John Wiley & Sons, c2006. 658 s. ISBN 0-471-66093-0. (EN)
DAMODARAN, A. Damodaran on valuation: security analysis for investment and corporate finance. 2nd ed. Hoboken: John Wiley & Sons, c2006. 685 s. ISBN 0-471-75121-9. (EN)
McKINSEY & COMPANY, KOLLER, T., GOEDHART, M., WESSELS, D. (2005) Measuring and Managing th Value of Companies. 4th Editon (University Edition). New Jersey: Wiley. 742 p. ISBN 978-0-471-70221-4. (EN)

Recommended reading

Atrill, P. & McLaney, E., (2004) Accounting and Finance for Non-Specialists, 4, Prentice Hall, Harlow (EN)
BRIGHAM, E. F. & EHRHARDT, M. C. Financial Management: Theory and Practice, 2011, 1152 s. ISBN 978-1-4390-7809-9 (EN)

Classification of course in study plans

  • Programme MGR-EBF-D Master's

    branch MGR-EBF , 2 year of study, winter semester, compulsory

Type of course unit

 

Lecture

50 hod., optionally

Teacher / Lecturer

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

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 – 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. Investment strategy – types of investment strategy. Capital Planning. Risks in investment projects.
9. Net working capital management. Credit management. Cash management