Course detail

Corporate Finance

FP-fpPAcad. year: 2018/2019

The course focuses on the following topics: fundamentals of corporate finance (basic concepts of corporate finance, objects of corporate finance, corporate finance management roles, ..), financing of entrepreneurship (the classification of financial resources, financing and risks, internal and external financial resources, specific forms of corporate finance), business needs (forms of business needs, determinants of business needs, the time structure of business needs, planning of business needs ..).

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Learning outcomes of the course unit

Students will be able to identify individual needs according to the area of company activity, they will be aware of the financial backing of these needs, they will be able to define and apply internal and external resources for corporate financing, as well as methods of capital planning and methods of evaluation of the investment efficiency, methods of cash flow quantification, basic methods of management of the working capital.

Prerequisites

Knowledge of account sheets, knowledge of statement and accounting procedures for entrepreneurs, mathematical knowledge of functions.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course contains lectures that explain basic principles, problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

Requirements for awarding of credit:
a) Active participation in seminars: the student has a duty to actively participate in a minimum of five seminars. Not being prepared for a seminar is penalised - 2 points for each seminar, which are subtracted from the points gained from tests on examples. Being excused from participation in seminars is governed by the internal regulations of BUT.
b) Credit examination: At the end of the seminar the student will take a test on examples, the score from which will account for a maximum of 40 % of the overall assessment.
Students will be awarded the credit if they have at least 50 % of the possible number of points from the seminars. The assessment from the seminars contributes to the overall assessment of the course.

Examination requirements:
Knowledge is tested by a written examination. Only students who have applied for the examination in IS and have the credit entered will be allowed to take the examination. The examination is made up of open questions, closed questions with a choice of more correct answers and examples. The examination lasts 60 minutes. There is a maximum of 60 points in the examination and a minimum of 30 points is needed to pass. The resulting assessment for the course is the sum of points from the seminars and the examination. The result is classified according to the ECTS scale. Incorrect or illegible answers are assessed as unsatisfactory.

Course curriculum

The enterprise and its mission. Corporate finances. The corporate founding budget. Managing capital invested in fixed assets. Methods of evaluating investment projects. Managing capital invested in current assets. Economic criteria for evaluating inventory management. Managing receivables. Sources of corporate finance. Corporate cash flow. The financial objectives of the enterprise and their evaluation.

Work placements

Not applicable.

Aims

The main objective of the course is to provide students with the necessary theoretical knowledge regarding corporate finance. It requires mastering the up-to-date approaches to defining the needs of the company, defining possible resources for covering those needs, as well as methods of planning and evaluation of investment projects. Also necessary is to understand questions related to the cash flow management and management of the working capital.

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

Control of results of independent work on assigned tasks. In case of excused absence from seminars, the teacher can set additional condition if appropriate, usually elaboration of partial written task.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

KISLINGEROVÁ, E. a kol. Manažerské finance, Praha: C.H.Beck, 2010. 864 s. ISBN 978-80-7400-194-9.
KORÁB, V.; REŽŇÁKOVÁ, M.; PETERKA, J. Podnikatelský plán v praxi. Brno:Computer Press, 2007. 216 s. ISBN 978-80-251-1605-0.
REŽŇÁKOVÁ, M.; HEDIJA, V.; KARAS, M.; SÁGHY ESTÉLYI, K.; ŽIŽLAVSKÝ, O.: Finance podniku. Průvodce studiem pro kombinovanou formu studia. Brno, 2016 (elektronicky)
SRPOVÁ, J.; ŘEHOŘ, V. a kol. Základy podnikání. Teoretické poznatky, příklady a zkušenosti českých podnikatelů. Praha: Grada Publishing, 2010. 432 s. ISBN 978-80-247-3339-5.

Recommended reading

BREALEY, R.; MYERS, S.; ALLEN, F. Principles Of Corporate Finance. 11th Edition. McGraw-Hill Australia, 2013. ISBN 9780078034763.

Classification of course in study plans

  • Programme BAK-EP Bachelor's 2 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

Syllabus

The basic topics covered in the lectures are as follows:
1. Course introduction. The business and its mission.
2. Corporate finance. Founding budget of an enterprise.
3. Managing capital invested in fixed assets.
4. Methods of evaluating investment projects – cost and revenue methods.
5. Managing capital invested in current assets.
6. Economic criteria for evaluating inventory management.
7. Managing receivables.
8. External own sources of corporate finance.
9. External sources of corporate finance.
10. Support programmes for financing.
11. Internal sources of financing.
12. Corporate cash flow – expenditure, income, methods for establishing cash flow.
13. Corporate financial objectives and their evaluation.

Exercise

26 hod., compulsory

Teacher / Lecturer