BPF_AFMA Financial Management

Faculty of Economics and Administration
Autumn 2021
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Oleg Deev, Ph.D. (lecturer)
prof. Ing. Štefan Lyócsa, PhD. (lecturer)
Oleg Deev, Ph.D. (seminar tutor)
prof. Ing. Štefan Lyócsa, PhD. (seminar tutor)
Guaranteed by
prof. Ing. Štefan Lyócsa, PhD.
Department of Finance – Faculty of Economics and Administration
Contact Person: Mgr. Jana Nesvadbová
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Thu 12:00–13:50 S305, except Thu 16. 9., except Thu 4. 11.
  • Timetable of Seminar Groups:
BPF_AFMA/01: Thu 14:00–15:50 S305, except Thu 16. 9., except Thu 4. 11., O. Deev, Š. Lyócsa
Prerequisites
The use of calculators (preferably the use of own personal laptops with spreadsheet program) is strongly encouraged on seminars.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 24 student(s).
Current registration and enrolment status: enrolled: 0/24, only registered: 0/24, only registered with preference (fields directly associated with the programme): 0/24
fields of study / plans the course is directly associated with
Course objectives
The course offers an introductory insight into key topics of financial management. The objective of the course is to develop an understanding about the ideas and methods of valuing investments and companies, and understand the basic challenges of financing firms and their activities (investments). Emphasis is placed on connecting evaluation and financing decisions as the two are closely related.
Learning outcomes
At the end of this course a student will be able to:
- understand key ideas in valuation and financing decisions;
- calculate the value of an investment;
- value simple bond instruments;
- perform a quantitative and qualitative risk-return analysis;
- understand the concept of opportunity costs and the costs of capital;
- identify environmental factors that influence financing decisions.
Syllabus
  • Introduction
  • 1. Introduction to Financial Management. Financial management as a scientific discipline. Corporate life cycle. Objectives of a corporation. Financial Markets. Financial Securities. Cost of money.
  • 2. Introduction to Financial Statements. Value of the Firms. Financial Statements. The Balance Sheet. The Income Statement. Statement of Stockholder’s Equity. Statement of Cash Flow.
  • 3. Introduction to Financial Analysis. Financial Analysis. Liquidity Ratios. Asset Management Ratios. Debt Management Ratios. Profitability Ratios. Market Value Ratios. Du Pont Equation.
  • Valuation
  • 4. Time Value of Money. Irregular payments. Compounding periods. Amortized loans.
  • 5. Debt instruments (Bonds). Time Value of Money. Annuities. Perpetuity and Irregular Payments. Amortized loans. Determinants of interest rates.
  • 6. Risk-return on investments. Expected returns. Risk.
  • 7. Cost of Capital. WACC I. Cost of Debt. Cost of preferred stocks. Cost of equity. WACC II.
  • 8. Capital budgeting I. Evaluating investment proposals.
  • 9. Capital budgeting II. Estimation of project’s cash-flows. Scenario and sensitivity analysis. Real options.
  • Financing
  • 10. Distribution to shareholders. Theories of investor’s distribution preferences. Clientele effect. Signaling hypothesis. Residual distribution model. Dividends vs. stock re-purchase.
  • 11. Capital Structure Decisions. Central issues in capital structure management. Capital structure theories.
  • Further topics in financial management
  • 12. Working capital management. Current Assets & Financing. Cash conversion cycle. Monthly cash budget. Inventory & receivables management.
  • 13. Lease Financing. Reasons for lease arrangements. Types of lease contracts. Tax effects. Evaluating lease contracts – lessee’s perspective.
Literature
    required literature
  • BRIGHAM, Eugene F., Michael C. EHRHARDT and Roland FOX. Financial management : theory & practice. EMEA edition. Hampshire: Cengage Learning, 2016, xiv, 622. ISBN 9781473729605. info
    recommended literature
  • BREALEY, Richard A., Stewart C. MYERS and Alan J. MARCUS. Fundamentals of corporate finance. Tenth edition. New York: McGraw-Hill Education, 2020, xxxi, 728. ISBN 9781260566093. info
  • BRIGHAM, Eugene F. and Louis C. GAPENSKI. Intermediate financial management. 4. ed. Philadelphia: Dryden Press, 1993, xxvii, 112. ISBN 0030754828. info
Teaching methods
Lectures sketch the key ideas behind important concepts of Financial management. Seminars are oriented towards increasing practical skills needed to value investments, support various types of financing decisions.
Assessment methods
Claims for exam: 85% participation of seminars (i.e. absence at max 2 seminars is allowed).
Grading is in accordance with the internal guidelines of the Faculty of Economics and Administration of Masaryk’s University and is based on midterm I (20%), midterm II (20%), and final exam (60%). Points from exams are accumulated.
Tests contain theoretical (questions) and practical part (exercises). Final exam is a written exam.
Attention! Final grade scale is following:
100 - 92 % - A
91 - 84 % - B
83 - 76 % - C
75 - 68 % - D
67 - 60 % - E
less than 60 % - F
Language of instruction
English
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
The course is also listed under the following terms Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2022, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (Autumn 2021, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2021/BPF_AFMA