ESF:BKF_FIRI Foundations of Corporate Finan - Course Information

BKF_FIRI Foundations of Corporate Finance

Extent and Intensity

26/0/0. 6 credit(s). Type of Completion: zk (examination).

Teacher(s)

prof. Ing. Štefan Lyócsa, PhD. (lecturer)
doc. Ing. Tomáš Plíhal, Ph.D. (lecturer)
Ing. Martina Sponerová, Ph.D. (lecturer)
Ing. Dagmar Vágnerová Linnertová, Ph.D. (lecturer)

Guaranteed by

prof. Ing. Štefan Lyócsa, PhD.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration

Timetable

Sat 6. 3. 8:00–10:50 P102, Fri 12. 3. 12:00–14:50 P102, Sat 27. 3. 12:00–14:50 P102, Sat 17. 4. 12:00–14:50 P102

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.

fields of study / plans the course is directly associated with

there are 16 fields of study the course is directly associated with, display

Course objectives

The aim of the course is to acquaint students with key aspects of corporate finance, with emphasis on the importance of financial management both in the economy and in the whole field of finance. The course is designed in two interrelated areas. The first part of the course will be devoted to the basics and then advanced methods of financial analysis. The aim of this part of the course will be to understand and evaluate the financial situation of the company, based on a detailed analysis of corporate statements, including the formulation of recommendations for such a company. The second part of the course will focus on individual methods of evaluation of investment projects. This part of the course is based on the issue of time value of money and further develops it into the issue of capitalization, discounting, and net present value. Furthermore, attention will be paid to theoretical concepts based on which financial decisions are formulated. The second part will also analyze selected types of securities from the perspective of the issuing company and investors and evaluate how the decision on individual methods of financing affects the financial situation of the company.

Learning outcomes

Students will be able to:
1. Apply methods and procedures of financial analysis to a selected company and then evaluate its financial situation and formulate recommendations both for the company itself and for providers of free funds.
2. Evaluate the intended investment project on the basis of selected criteria and the expected return and risk and subsequently recommend it for implementation or reject it.
3. Know the financial statements, analyze the company's capital structure and propose its optimization.
4. Orientation in financial instruments that can be used to finance the company.
5. Apply methods for finding the correct value of financial instruments with regard to risk and expected cash flow and formulate investment recommendations for the company and investors.

Syllabus

• Overview of lectures
  1. Introduction to financial management.
  2. Introduction to financial analysis, basics of financial statements.
  3. Property and financial structure of the company, basics of balance sheet items in financial analysis.
  4. Financial analysis I. Analysis of the economic and financial situation of the company.
  5. Financial analysis II. Net working capital, profitability, liquidity and financing of the company.
  6. Leasing.
  7. Problems of time value of money and analysis of methods based on time value of money.
  8. Problems of risk and return in the field of finance.
  9. Analysis of basic securities for business financing and their use.
  10. Value issues in the field of financial management.
  11. Basic methods and techniques for valuation of securities.
  12. Complementary topics in the field of financial management.
  

Literature

required literature
• Náhradní obsah: Vernimmen, Pierre, et al. Corporate Finance : Theory and Practice, John Wiley & Sons, Incorporated, 2017. ProQuest Ebook Central, https://ebookcentral.proquest.com/lib/masaryk-ebooks/detail.action?docID=5061190.
• RŮČKOVÁ, Petra. Finanční analýza : metody, ukazatele, využití v praxi. 6. aktualizované vydání. Praha: Grada Publishing, 2019, 152 stran. ISBN 9788027120284. URL 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
• HRDÝ, Milan and Michaela KRECHOVSKÁ. Podnikové finance v teorii a praxi. 2. vydání. Praha: Wolters Kluwer, 2016, 271 stran. ISBN 9788075524492. info

not specified
• WESTERFIELD, Randolph and Jeffrey F. JAFFE. Corporate finance. Edited by Stephen A. Ross. 7th ed. Boston: McGraw-Hill, 2005, xxxiii, 94. ISBN 0072829206. info

Teaching methods

Tutorials, readings, person-to-person tuition, progress test.

Assessment methods

The course is completed by a written exam. To successfully complete the course, it is necessary to obtain at least 51 points from the sum of the exam test and the midterm test. The overall evaluation of the course is given by the sum of points from the written exam (max. 70 points) and points from the midterm test on the tutorial. (max. 30 points). A minimum of 16 points from the tutorial test is set for admission to the exam. If a student does not meet the requirement of a minimum of 16 points from the tutorial test, he / she has the option of one correction. The corrective test is written in the first week of the exam period. The test will be designed again for 30 points and the result of the corrective test will then be included in the final evaluation of the course.

The following classification scales apply to student evaluation:

A: 100 - 91%,
B: 90 - 81%,
C: 80 - 71%,
D: 70 - 61%,
E: 60 - 51%,
F: less than 51 percent.

Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.

Language of instruction

Czech

Further comments (probably available only in Czech)

The course is taught annually.
Information on the extent and intensity of the course: tutorial 12 hodin.

• Enrolment Statistics (Spring 2021, recent)
  
• Permalink: https://is.muni.cz/course/econ/spring2021/BKF_FIRI