FP-fpPDAcad. year: 2019/2020
The course focuses on the following areas: fundamentals of corporate finance, the aims of corporate finance, defining corporate needs, the content of financial decision making, financing corporate activities, and corporate cash flow.
Learning outcomes of the course unit
Knowledge: Students will know the economic criteria for deciding on the legal form of financing, factors determining corporate needs, the principle for establishing the founding budget, the fundamentals of investing in fixed assets, and the principles of current assets. Students will gain an overview of potential sources of financing and their suitability.
Skills: Students will be able to identify individual needs depending on the field the enterprise works in and justify the requirements for sources of financing, monetise processes taking place in the enterprise and select criteria for evaluating the efficiency of the chosen processes.
Abilities: Students will be able to establish a founding budget for the enterprise in various field of business, i.e. define property requirements and calculate the need for sources of funding. They will be able to assess the production capacity of the production capacity of the enterprise and apply methods for assessing property renewal projects. They will be able to establish the cost and expenditure associated with individual funding sources, and judge the suitability of using loans and leasing. They will be able to apply basic economic criteria in evaluating inventory systems and propose alternative solutions.
Knowledge of financial statement, knowledge of accounting systems and procedures for entrepreneurs, a mathematical knowledge of functions
Recommended optional programme components
Recommended or required reading
FOTR, J. a I. SOUČEK. Podnikatelský záměr a investiční rozhodování. 1. vyd. Praha, 2006. 356 s. ISBN 80-247-0939-2. (CS)
KISLINGEROVÁ, E. Manažerské finance. 3. vyd. Praha: C. H. Beck, 2010, 811 s. ISBN 978-80-7400-194-9. (CS)
MAREK, P. a kol. Studijní průvodce financemi podniku. 2. vyd. Praha: Ekopress. 2009. 634 s. ISBN 978-80-86929-49-1 (CS)
Finance podniku - sbírka příkladů. (elektronicky). 2018 (CS)
REŽŇÁKOVÁ, M. Efektivní financování rozvoje podnikání. Praha: Grada, 2012, 142 s. ISBN 978-80-247-1835-4. (CS)
SYNEK, M. a E. KISLINGEROVÁ. Podniková ekonomika. 6., přeprac. a dopl. vyd. V Praze: C.H. Beck, 2015, 526 s. ISBN 978-80-7400-274-8. (CS)
VALACH, J. Investiční rozhodování a dlouhodobé financování. 3., přeprac. a rozš. vyd. Praha: Ekopress, 2010, 465 s. ISBN 978-80-86929-71-2. (CS)
Planned learning activities and teaching methods
The course contains lectures that explain the basic principles, problems and methodology of the discipline, and seminars that promote a practical knowledge of the material 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.
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.
Language of instruction
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.
The main objective of the course is to provide students with the theoretical foundations of corporate finance and their application. This requires mastering approaches to defining the needs of the enterprise on the basis of the business plan and the chosen form of the enterprise, learning methods for planning and evaluating the renewal of fixed assets, applying economic criteria to inventory management, defining possible resources for financing corporate needs and judging their appropriateness for the enterprise, and quantifying the associated costs.
Specification of controlled education, way of implementation and compensation for absences
Control of results of independent work on assigned tasks. In the case of excused absence from seminars the teacher can set additional conditions if appropriate, usually the production of a partial written task.