BPF_AFMA Financial Management

Faculty of Economics and Administration
Autumn 2024
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
In-person direct teaching
Teacher(s)
prof. Ing. Štefan Lyócsa, PhD. (lecturer)
Andrea Rigamonti, B.Sc., M.Sc., Ph.D. (lecturer)
prof. Ing. Štefan Lyócsa, PhD. (seminar tutor)
Andrea Rigamonti, B.Sc., M.Sc., Ph.D. (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
Wed 16:00–17:50 P312, except Wed 18. 9., except Wed 6. 11.
  • Timetable of Seminar Groups:
BPF_AFMA/01: Thu 10:00–11:50 S309, except Thu 19. 9., except Thu 7. 11., A. Rigamonti
BPF_AFMA/02: Wed 18:00–19:50 S309, except Wed 18. 9., except Wed 6. 11., A. Rigamonti
Prerequisites
The use of calculators (preferably the use of own personal laptops with spreadsheet program) is required during seminars.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 50 student(s).
Current registration and enrolment status: enrolled: 51/50, only registered: 4/50
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
  • 1. Introduction to the corporation and financial markets.
  • 2. Introduction to financial statements: balance sheet, income statement, statement of stockholder’s equity, statement of cash flows.
  • 3. Introduction to financial statements analysis: profitability ratios, asset management ratios, liquidity ratios, leverage ratios, efficiency ratios, DuPont equation.
  • 4. General evaluation principles. Present value of some common investments. Amortized loans. Investment decisions rules.
  • 5. Interest rates. Valuing bonds.
  • 5. Weighted average cost of capital. Valuing stocks.
  • 6. Returns and risk. Estimation windows. Mean and variance of a portfolio.
  • 7. The CAPM model. Estimation of CAPM parameters.
  • 8. Capital structure in a perfect market. Payout policy.
  • 9. Leasing.
  • 10. Option basics. Option payoffs at expiration.
Literature
    required literature
  • BERK, Jonathan B. and Peter M. DEMARZO. Corporate finance. Sixth edition, Global editio. Harlow, England: Pearson, 2024, 1195 stran. ISBN 9781292446318. info
  • 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
Participation to the seminars is mandatory. Maximum 3 absences are allowed in order to be admitted to the final exam.
Grading is in accordance with the internal guidelines of the Faculty of Economics and Administration of Masaryk’s University and is based on a midterm exam (40%), and final exam (60%). Points from exams are accumulated.
The exams are in written form and contain short theoretical questions and exercises.
The final grade scale is the 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 2021, Autumn 2022, Autumn 2023.
  • Enrolment Statistics (recent)
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