Course detail

Financing

FAST-MV04Acad. year: 2013/2014

Finances. Financial system. Tools and fundamentals of financial management. Foundation of the firm, its property and financial structure. Current assets in the firm, its management and financing. Short-term and long-term sources of property coverage. Financing of the project (order). The relation between the company and the state budget. Tax system in the Czech republic and its influence in company financing. Investment and national economy. Investment area (return, risk and liquidity). Time value of money. Feasibility study. Evaluation of economic efficiency and financial feasibility of structural investment projects. Procedures and methods for future development simulation of project. Economic efficiency ratios. Risk and uncertainty.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

Ing. Eva Vítková, Ph.D.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Students get orientation in basic categories of company´s financing.
Students get orientation in management of cash flow in construction company.
Student will learn about tools for management of particular kinds of short-term assets.
Students get orientation in own and other sources of company financing.
Students get basic information about tax system in the Czech republic and impact of taxes on company financing.
Students will learn about calculation of ratios of economic efficiency of investment.
Students will learn about creation of feasibility study.
Students will learn about work with risk and uncertainty in investment area.

Prerequisites

Orientation in basic economic terminology and in economy of construction firm.

Co-requisites

Issue of public finances, municipalities budgets.

Planned learning activities and teaching methods

The course is taught through lectures, practical classes and self-study assignments. Attendance at lectures is optional, but attendance at classes is compulsory.

Assesment methods and criteria linked to learning outcomes

For credit student must meet attendance and successfully complete a credit test. The exam consists of written and oral part.
Written exam - series of questions oriented in general knowledge and their application in examples, total sum 100 points. Limits for each grade of evaluation will be set. The limit for oral exam approval is 50.
Oral exam is the supplement to written exam. The objective of oral exam is to prove deeper understanding of the issue.

Course curriculum

1. – 2. Finances. Financial system. Particular parts of financial system (budgetary, credit, business) and relations among them. Tools for management of particular parts of financial system.
3. Property and sources for property coverage. Golden rules of financing. Work capital.
4. Own and foreign long-term sources. Short-term liabilities for covering of current assets.
5. Management of cash flows in the structural order.
6.-7. Tax system in the Czech republic.
8. Investment and economy growth. Sorts of investment possibilities.
9. Theoretical appraisal for evaluation of economic efficiency of investment. Time value of money.
10.Feasibility study.
11.Economic analysis. Economic efficiency of investment ratios (NPV, IRR, PB).
12.Analysis of uncertainty according to project financial evaluation. Resources and reason of uncertainty. Inflation.
13.Risk and uncertainty analysis: profit, sensitivity and probability analysis



8.

Work placements

Not applicable.

Aims

To learn about fundamentals of financing. To understand to money flows in the order and basic methods of their control. Working with entire available money sources.Goal of this subjec
To get about knowledge and skills regarding to describe and analysis variables as inputs into calculation of economic efficiency. Creation of models for calculation of economic and financial feasibility of investment projects.

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

Extent and forms are specified by guarantor’s regulation updated for every academic year.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BUTLER, Richard a DAVIES, Leslie a PIKE, Richard a SHARP, John: Strategic Investment Decisions. Routledge. London and New York, 1993. ISBN 978-0415075084. (EN)
KORYTÁROVÁ,Jana a FRIDRICH, Jaroslav a PUCHÝŘ, Bohumil: Ekonomika investic. Brno: Akademické nakladatelství CERM, s.r.o., 2002. ISBN 80-214-2089-8. (CS)
FOTR, Jiří a SOUČEK, Ivan: Podnikatelský záměr a investiční rozhodování. Grada Publishing, 2005. ISBN 80-247-0939-2. (CS)
SYNEK, Miloslav a kol.: Manažerská ekonomika. Grada Publishing, Praha, 2007. ISBN 978-80-247-1992-4. (CS)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme B-P-C-MI Bachelor's

    branch MI , 3. year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

Ing. Eva Vítková, Ph.D.

Syllabus

1. – 2. Finances. Financial system. Particular parts of financial system (budgetary, credit, business) and relations among them. Tools for management of particular parts of financial system.
3. Property and sources for property coverage. Golden rules of financing. Work capital.
4. Own and foreign long-term sources. Short-term liabilities for covering of current assets.
5. Management of cash flows in the structural order.
6.-7. Tax system in the Czech republic.
8. Investment and economy growth. Sorts of investment possibilities.
9. Theoretical appraisal for evaluation of economic efficiency of investment. Time value of money.
10.Feasibility study.
11.Economic analysis. Economic efficiency of investment ratios (NPV, IRR, PB).
12.Analysis of uncertainty according to project financial evaluation. Resources and reason of uncertainty. Inflation.
13.Risk and uncertainty analysis: profit, sensitivity and probability analysis

Exercise

26 hours, compulsory

Teacher / Lecturer

Ing. Eva Vítková, Ph.D.

Syllabus

1. Characteristic of property and sources for property coverage.
2. Orientation and creation of financial statement (balance-sheet, profit and loss account).
3. Depreciation of property.
4. Characteristic of short-term property and liabilities.
5. Charateristic and creation cash flow.
6. Income tax.
7. Indirect taxes.
8. Basic ratios for evaluation of the economic efficiency of investment.
9. Analysis of uncertainties - profitability, sensitivity and probability analysis.
10.Assignment of project - production of wooden Windows.
11.Continuation of project - profit and loss statement, cash flow statement.
12.Optimization of financial resources - credit, leasing, bonds.
13.Credit test, credit.