| Course Unit Code | 154-0323/01 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Compulsory |
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| Level of Course Unit * | Second Cycle |
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| Year of Study * | First Year |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | Czech |
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| Prerequisites and Co-Requisites | There are no prerequisites or co-requisites for this course unit |
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| Name of Lecturer(s) | Personal ID | Name |
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| ZME40 | prof. Dr. Ing. Zdeněk Zmeškal |
| TIC02 | prof. Ing. Tomáš Tichý, Ph.D. |
| VAL35 | Ing. Jiří Valecký, Ph.D. |
| Summary |
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| In this course, fundamental issues of financial decision-making are treated. Special attention is paid to the risk and flexibility. The course extends knowledge obtained in basic corporate finance courses by the aspects of risk and flexibility. As well, it extends financial markets courses by proper mathematical treatment. The aim of the course is to introduce key financial issues and teach the students to propose their robust solutions with up-to-date techniques. The students should be able to analyze the linkage between primary variables and proposed solutions. |
| Learning Outcomes of the Course Unit |
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The aim of the course is to allow the students to:
- understand key financial issues under risk and uncertainty
- learn how to propose robust solutions of these issues using up-to-date tools and techniques
- evaluate the linkage between the return and risk
- understand flexible approaches to decision-making
- analyze the linkage between primary variables and proposed solutions. |
| Course Contents |
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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)
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| Recommended or Required Reading |
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| Required Reading: |
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BERK, J. and P. DEMARZO. 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., M. ČULÍK a T. TICHÝ. Finanční rozhodování za rizika. Sbírka řešených příkladů. 4. vyd. Ostrava: VŠB-TU Ostrava, 2013. 182 s. ISBN 978-80-248-3249-4.
|
BERK, J. and P. DEMARZO. 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., M. ČULÍK a T. TICHÝ. Finanční rozhodování za rizika. Sbírka řešených příkladů. 4. vyd. Ostrava: VŠB-TU Ostrava, 2013. 182 s. ISBN 978-80-248-3249-4.
|
| Recommended Reading: |
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BREALEY, R. A., S. C. MYERS a F. ALLEN. Principles of Corporate Finance. 13th ed. McGraw-Hill, 2019, 992 s. ISBN 978-0-07-715156-0.
CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2017, 480 s. ISBN 978-06-911-6080-1.
COPELAND, T. E., J. W. WESTON and K. SHASTRI. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4. |
BREALEY, R. A., S. C. MYERS a F. ALLEN. Principles of Corporate Finance. 13th ed. McGraw-Hill, 2019, 992 s. ISBN 978-0-07-715156-0.
CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2017, 480 s. ISBN 978-06-911-6080-1.
COPELAND, T. E., J. W. WESTON and K. SHASTRI. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4. |
| Planned learning activities and teaching methods |
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| Lectures, Tutorials |
| Assesment methods and criteria |
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| Task Title | Task Type | Maximum Number of Points
(Act. for Subtasks) | Minimum Number of Points for Task Passing |
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| Credit and Examination | Credit and Examination | 100 (100) | 51 |
| Credit | Credit | 35 (35) | 18 |
| Writen test | Written test | 35 | 18 |
| Examination | Examination | 65 (65) | 33 |
| Writen test | Written test | 20 | 10 |
| Oral examination | Oral examination | 45 | 23 |