Terminated in academic year 2020/2021

Financial Decision-Making under Risk

Type of study	Follow-up Master
Language of instruction	Czech
Code	154-0323/01
Abbreviation	FRR
Course title	Financial Decision-Making under Risk
Credits	5
Coordinating department	Department of Finance
Course coordinator	prof. Dr. Ing. Zdeněk Zmeškal

Subject syllabus

1. Proposal methods and evaluation of firm financial plan
2. Financial decision-making criteria under risk – principles, axoms
3. Utility functions, their application in financial decision-making
4. mean-variance models, Markowitz model
5. CAPM model, APT model.
6. Theory of company´s capital structure
7. Capital budgeting, investmnt valuation under risk
8. Dividend theories and policies.
9. Company valuation under risk
10. Acquisitions
11. Forward and futures contracts
12. Option contracts. Hedging.
13. Hedging, methods of hedging, possibilities in financial management
14. Option methodology and its application in financial management
15. Cash management of multinational firm (theory of exchange rates estimation)

Literature

BERK, J., DEMARZO, P. Corporate Finance. 5th ed. Harlow: Pearson, 2023, 1184 p. ISBN 978-1-292-16016-0.
HULL, J. C. Option, Futures and other Derivatives. 11th ed. New York: Prentice Hall, 2022, 880 s. ISBN 978-1-292-41065-4.
ZMEŠKAL, Z., ČULÍK, M., TICHÝ, T. Finanční rozhodování za rizika. Sbírka řešených příkladů. 4. vyd. Ostrava: VŠB-TU Ostrava, 2013. 182 s. ISBN 978-80-248-3249-4.

Advised literature

BREALEY, R. A., MYERS, S.C., ALLEN, F., EDMANS, A. Principles of Corporate Finance. 14th ed. McGraw-Hill, 2023, 992 s. ISBN 978-1-2-4-08094-6.
CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2018, 480 s. .
COPELAND, T. E., WESTON, J. F., SHASTRI, K. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4.

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