Course detail

Basic Elements of Financing

FP-ZFAcad. year: 2009/2010

Financial goals and financial management principles. Financial environment of the company. Structure and value of company assets and sources of financing. Investment decisions. Current assets and liquidity 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

Students will have an overview of financial management principles and goals. They will be able to effectively utilize business information for financing and investment decisions. They will also have an overview of company assets management, including liquidity management.

Prerequisites

Successful completion of the course is conditional on the knowledge of accounting and mathematics and on the basic overview of economical aspects within business.

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: At least 50 % attendance at seminars together with successful passing of two tests (each grade at least 50 %)..
WAY OF EXAMINATIONS: The exam has a written and an oral part and is oriented to verify theoretical and practical knowledge. Final grade is awarded with respect to semester results of a student.
RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology

Course curriculum

1. Time Value of Money. Risk and Return.
2.-3. Financial Statements - Wellspring of Information for Financial Decision-Making.
4. Initial Budget. Factors of Production and Their Consumption.
5. Company Assets' Structure. Company Assets' Valuation.
6.-7. Current Assets Management - Stocks and Receivables.
8. Investment Decisions. Methods of Investment Projects Evaluation.
9. Sources of Financing. Basic Rules of Company Financing. Company Financial Structure.
10. Short-Term Financing (Supplier Credits, Bank Credits, Supportive Programs).
11. Long-Term Sources of Financing.
12. Company Financial Environment - Institutions and Organization of Financial Market.
13. Financial Goals of the Company. Financial Management principles. Information Sources for Financial Decisions.

Work placements

Not applicable.

Aims

The objective of the course is to make students familiar with basic corporate cash flows, their monitoring and prediction, on the basis of relevant external and internal information.

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

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is required and 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

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK-MIn Bachelor's

    branch BAK-MIn , 2. year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

doc. Ing. Romana Čižinská, Ph.D.

Syllabus

LECTURES:
1. Time Value of Money. Risk and Return.
2.-3. Financial Statements - Wellspring of Information for Financial Decision-Making.
4. Initial Budget. Factors of Production and Their Consumption.
5. Company Assets' Structure. Company Assets' Valuation.
6.-7. Current Assets Management - Stocks and Receivables.
8. Investment Decisions. Methods of Investment Projects Evaluation.
9. Sources of Financing. Basic Rules of Company Financing. Company Financial Structure.
10. Short-Term Financing (Supplier Credits, Bank Credits, Supportive Programs).
11. Long-Term Sources of Financing.
12. Company Financial Environment - Institutions and Organization of Financial Market.
13. Financial Goals of the Company. Financial Management principles. Information Sources for Financial Decisions.

Exercise

26 hours, compulsory

Teacher / Lecturer

Ing. Martin Cabala

Syllabus

SEMINARS:
1. Content of the Subject. Requirements . Introductory Terms. Choice of Business Legal Form.
2. Basics of Financial Mathematics - Interest, Risk, Time Value of Money.
3. Set Up of Opening Balance Sheet. Initial Budget.
4. Production Activity, Costs, Income and Profit. Product Price Establishment.
5. Set Up of Income Statement and Balance Sheet. Appraisal of the Results. Rules of Financing.
6. Test.
7. - 8. Cash Flow Statement.
9. Current Assets Management
10.Raising External Sources of Financing. Settlement of Credits. Application of Alternative Financing Forms.
11. Methods of Efficiency Evaluation of Investment Projects.
12. Test