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Financial Management and Decision - Making

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code154-0301/09
Number of ECTS Credits Allocated4 ECTS credits
Type of Course Unit *Choice-compulsory type B
Level of Course Unit *First Cycle
Year of Study *Third Year
Semester when the Course Unit is deliveredSummer Semester
Mode of DeliveryFace-to-face
Language of InstructionCzech
Prerequisites and Co-Requisites
PrerequisitiesCourse Unit CodeCourse Unit Title
154-0300Finance
Name of Lecturer(s)Personal IDName
RIH40Ing. Dagmar Richtarová, Ph.D.
BOR30Ing. Martina Borovcová, Ph.D.
CUL33doc. Ing. Miroslav Čulík, Ph.D.
Summary
The course Financial management and decision-making provides the students fundamental principles of financial decision-making, particularly with the importance of the financial statements for financial management, reflection of the time value of money and risk associated with the method of the investment project evaluation, mix of different sources of capital and its allocation into company´s assets to increase its market value.
Learning Outcomes of the Course Unit
The aim of the course is to introduce the students in selected areas of financial decision-making.
Students will be able:
- to introduce the importance of time value of money into decision-making,
- to apply investment criterions,
- to analyze and select optimal sources for company financing,
- to propose financial plan of a firm.
Course Contents
1. Principles of financial management and decision-making
2. Methods and approaches of the company´s financial performance assessment
3. Financial analysis of a company
4. Pyramidal decomposition, influence quantification and prediction models
5. Company´s capital structure, costs of capital, models for cost of capital determination.
6. Capital structure optimization.
7. Capital budgeting – objective, principles, stages, categorization of investments. Project´s cash flow prediction.
8. Investment project evaluation.
9. Analysis of risk factors of investments. Assessment and selection of mutually exclusive investments.
10. Capital sources of a company. Rules for assets financing. Comparison and selection of optimal source.
11. Dividends and dividend policy of a company.
12. Financial planning.
13. Company valuation.
Recommended or Required Reading
Required Reading:
BROOKS, Raymond. Financial Management: Core Concepts. Pearson; 4th edition, 2018. 656 pp. ISBN 978-0134730417.
HIGGINS, Robert. Analysis for Financial Management. New York: McGraw-Hill, 2018. 464 s. ISBN 0077861787.
KINICKI, Angelo et al. Management: A Practical Introduction. McGraw-Hill Education; 7th edition, 2022. 672 pp. ISBN 978-0078029547.

BREALEY, Richard a Steward MYERS. Teorie a praxe firemních financí. Praha: Computer Press, 2020. 1072 p. ISBN 9788026500285.
DLUHOŠOVÁ, Dana a kol. Finanční řízení a rozhodování podniku. 4. vyd. Jesenice: Ekopress, 2021. 257 s. ISBN 978-80-87865-71-2.
JINDŘICHOVSKÁ, Irena. Finanční management. Praha: Ekopress, 2019. 320 pp. ISBN 978-80-7400-052-2.


Recommended Reading:
BRIGHAM, Eugene a Michael EHRHARDT. Financial Management: Theory & Practice. Cincinnati, USA: South-Western College, 2019. 1180 p. ISBN 130563229X.
HILLIER, David. Corporate Finance. London: McGraw-Hill, 2020. 1118 p. ISBN 9781526848086.
LUMBY, Stephen, Chris JONES. Corporate Finance: Theory & Practice. London: Cengage Learning EMEA, 2021. 752 p. ISBN 978-1844809462.

BACON, Franc, et al. Corporate Financial Management. 4th Ed. Livonia: XanEdu Publishing Inc., 2020. ISBN 978-1975076825.
ČIŽINSKÁ, Romana. Základy finančního řízení podniku. Praha: Grada, 2020. 240 s. ISBN 978-80-271-0194-8.
MAREK, Petr. Studijní průvodce financemi podniku. Praha: Ekopress, 2019. 624 p. ISBN 8086119378.
Planned learning activities and teaching methods
Lectures, Tutorials
Assesment methods and criteria
Task TitleTask TypeMaximum Number of Points
(Act. for Subtasks)
Minimum Number of Points for Task Passing
CreditCredit85 (85)85
        PísemkaWritten test85 85