Course detail

Financial Management

FP-IfmiPAcad. 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

3

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 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, financial mathematics and business economics.

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:
Obtain min. 25 points from writing test and project
Writing test 30 points
Project 20 points

Final exam 50 points.
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.

Course curriculum

Company financial management. Aspects of strategic financial management. Content of financial management during different business life cycle phases. Company financial goals. Economic Value Added.
Financial Strategic Management
– Equity financing (internal, external – stocks issue: capital market, types of stocks and related rights).
– Equity financing (external – stocks issue: increasing of owner's equity, venture capital).
– Debt capital (bonds, bank loan, leasing).
- Costs of capital and their utilization in financial decision making.
- Capital Planning. Risks in investment projects.
Operative Financial Management
- Company liquidity management. Net working capital management
- Credit management.
- Foreign exchange risk management.

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. Attendance at seminars is checked by the tutor. Lessons are composed on the basis of weekly schedules.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BRIGHAM, E.R., EHRHARDT, M.C. Financial Management. Tudory and Pracitice, Ohio: South-Western. (EN)

Recommended reading

KISLINGEROVÁ, E. a kol. Manažerské finance. 2. vyd. Praha: C.H.Beck, 2010,811 s. ISBN 978-80-7400-194-9. (CS)

Classification of course in study plans

  • Programme MGR-SI Master's

    branch MGR-IM , 2. 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 – 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.

Exercise

13 hours, compulsory

Teacher / Lecturer

Ing. Michala Strnadová, Ph.D.

Syllabus

1. Introduction. Cash flow. Financial Analysis
2. Factor Analysis
3. Methods of Leasing and Loan Comparation. Financial planning.
4. Methods for investment projects assessment – their utilization and risks.
5. Cash conversion cycle. Net working capital. Discount offering. Decisions on discount acceptance.
6. Test