MPF_FIFI Corporate Finance

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)
Ing. Veronika Kajurová, Ph.D. (lecturer)
doc. Ing. Tomáš Výrost, PhD. (lecturer)
Ing. Veronika Kajurová, Ph.D. (seminar tutor)
doc. Ing. Tomáš Výrost, PhD. (seminar tutor)
Guaranteed by
doc. Ing. Tomáš Výrost, PhD.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Thu 14:00–15:50 P101, except Thu 19. 9., except Thu 7. 11.
  • Timetable of Seminar Groups:
MPF_FIFI/01: Mon 16:00–17:50 VT105, except Mon 16. 9., except Mon 4. 11., V. Kajurová
MPF_FIFI/02: Mon 14:00–15:50 VT105, except Mon 16. 9., except Mon 4. 11., T. Výrost
MPF_FIFI/03: Mon 14:00–15:50 P201, except Mon 16. 9., except Mon 4. 11., V. Kajurová
MPF_FIFI/06: Mon 12:00–13:50 VT202, except Mon 16. 9., except Mon 4. 11., T. Výrost
Prerequisites
(! MPF_AFAP Corporate Finance ) && !NOWANY( MPF_AFAP Corporate Finance ) || (! MPH_FMAN Financial Management )
Elementary knowledge of financial management, microeconomics and macroeconomics, accounting, banking and financial markets.
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 90 student(s).
Current registration and enrolment status: enrolled: 98/90, only registered: 0/90, only registered with preference (fields directly associated with the programme): 0/90
fields of study / plans the course is directly associated with
Course objectives
The main goal of the course is to develop and deepen knowledge related to financial management. Considering the impact on the value of the company, the course develops theoretical framework for understanding and analyzing the main financial topics in the company. It thus focuses on advanced business valuation models, as well as on critical analysis of investment projects, evaluation of their effectiveness with respect to related cash flows and evaluation of their impact on the value of the company. The course also develops skills in analyzing the company's position on the capital market and in raising funds and allocating capital. Attention is also paid to topics such as restructuring and mergers and acquisitions. The course thus provides the necessary knowledge in evaluating selected management decisions and their impact on the company's performance and value.
Learning outcomes
After completing the course, students will be able to:
- apply advanced methods for valuing corporate capital,
- value financial and real assets used by the company,
- evaluate investment projects and critically evaluate their impact on the value of the company,
- evaluate the strategic decisions made and assess their impact on the development of society and its value.
Syllabus
  • Lectures:
    1) Financial analysis (review with an emphasis on selected aspects of the company's financial situation), strategic analysis, main features of a financial plan and its importance,
  • 2) Corporate finance, corporate governance, including responsible finance and ESG,
  • 3) Short-term and long-term financial planning,
  • 4) Capital structure of the company,
  • 5) Investment decision-making and project analysis,
  • 6) Real options,
  • 7) Reading Week,
  • 8) Introduction to company valuation and valuation techniques,
  • 9) Valuation I,
  • 10) Valuation II,
  • 11) Leasing,
  • 12) Restructuring,
  • 13) Mergers and acquisitions.
  • Seminars:
  • The first part of a seminar is devoted to discussion and examples relevant to the topic. The following part of the seminar is devoted to work on a semestral projectIn the following outline, it is taken into account that the seminars take place in the week before the lecture.
  • 1) Introductory information, team formation, company selection for the semester project, including competitors, dataset work.
  • 2) Completion of the dataset / Familiarization with the selected company through financial analysis (emphasis on ratios and DuPont decomposition),
  • 3) Analysis of the competitive environment, life cycle and creation of a business plan,
  • 4) Examples - financial planning / Creation of a financial plan, including the use of various development scenarios,
  • 5) Interim test No. 1 / Examples - capital structure (WACC, effects of change in capital structure on ROE, EPS) / Determination of WACC for a selected company,
  • 6) Public holiday (individual project work)
  • 7) Reading Week,
  • 8) Examples - investment evaluation and project analysis / Investment project proposal for the selected company,
  • 9) Interim test No. 2 / Determination of the CFs of the project and evaluation of the suitability of the proposed project,
  • 10) Calculation of FCFF and FCFE and valuation of the company using the DCF approach,
  • 11) Valuation of the company using other methods,
  • 12) Completion of the semestral project and its submission,
  • 13) Interim test No. 3 / Examples - evaluating the effectiveness of the merger.
Literature
    required 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
  • BREALEY, Richard A., Stewart C. MYERS and Franklin ALLEN. Principles of corporate finance. Thirteenth edition. New York: McGraw-Hill Education, 2020, xxx, 918. ISBN 9781260565553. info
  • Corporate issuers, equity valuation : CFA Program Curriculum 2024. Hoboken: Wiley, 2024, viii, 351. ISBN 9781953337573. info
  • Equity valuation and fixed income : CFA Program Curriculum 2024. Hoboken: Wiley, 2024, x, 651. ISBN 9781953337580. info
  • Financial statement analysis : CFA Program Curriculum 2024. Hoboken: Wiley, 2024, x, 507. ISBN 9781953337566. info
    recommended literature
  • MAŘÍK, MILOŠ. Metody oceňování podniku pro pokročilé: hlubší pohled na vybrané problémy. 3. upravené. Praha: Ekopress, 2023, 574 pp. ISBN 978-80-87865-38-5. info
  • HAWAWINI, Gabriel A. and Claude VIALLET. Finance for executives : managing for value creation. Seventh edition. Andover: Cengage, 2022, xxxi, 800. ISBN 9781473778917. info
  • MAŘÍK, Miloš and KOLEKTIV. Metody oceňování podniku: proces ocenění, základní metody a postupy. 4th ed. Praha: Ekopress, 2018. ISBN 978-80-87865-38-5. info
  • 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
Lectures, seminars, individual study of literature, individual consultations, homework, tests, project elaboration
Assessment methods
The course is completed by an oral exam. As part of the oral exam, emphasis will be placed on the discussion related to the submitted project. The overall evaluation of the course is given by the sum of the points from the oral exam (max. 40 points), points from the tests (max. 60 points) and points for the activity (max. 10 points).

The condition for admission to the oral exam is participation in seminars (max. 3 unexcused absences), passing three progress tests (it has to be obtained at least 30 points from the tests*) and processing and submitting in the project (late submission is not accepted). It is possible to get 10 bonus points for an activity. These points will be included in the final evaluation of the subject.

*If the student does not earn at least 30 points from the tests, then the student has the option of one correction. A correction test will take place in the first week of the exam period. It will cover all topics from the course. Again, at least 30 points out of a possible 60 is needed.

The following classification scales apply to the evaluation of students:
A: 92 – 100 p,
B: 84 – 91 p,
C: 76 – 83 p,
D: 68 – 75 p,
E: 61 – 67 p,
F less than 61 p.

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.

Students studying abroad contact the lecturer in the first week of semester by email or via MS Teams and agree on the conditions for completing the course.
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
General note: Tento předmět je obsahově ekvivalentní s předmětem MPF_AFAP vyučovaném v anglickém jazyce.
Listed among pre-requisites of other courses
Teacher's information
The course is taught annually. The lectures are not recorded in Studium Online.
The course is also listed under the following terms Autumn 2009, Autumn 2010, Autumn 2011, Autumn 2012, Autumn 2013, Autumn 2014, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2022, Autumn 2023.
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