| Course Unit Code | 154-0323/02 |
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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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| TIC02 | prof. Ing. Tomáš Tichý, Ph.D. |
| KRE330 | doc. Ing. Aleš Kresta, 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. Fundamentals of financial decision-making
2. Utility function in decision-making
3. Portfolio theory
4. Capital asset pricing model
5. Arbitrage pricing theory
6. Real investment evaluation
7. Decisions with flexibility
8. Financial derivatives - linear
9. Financial derivatives - options
10. Corporate hedging
11. Cash management of a multinational company
12. Exchange rates forecasting
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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 |
| Písemka | Written test | 35 | 18 |
| Examination | Examination | 65 (65) | 33 |
| Písemka | Written test | 20 | 10 |
| Ústní zkouška | Oral examination | 45 | 23 |