| Course Unit Code | 154-0500/03 |
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| Number of ECTS Credits Allocated | 6 ECTS credits |
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| Type of Course Unit * | Choice-compulsory |
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| Level of Course Unit * | First Cycle |
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| Year of Study * | |
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| Semester when the Course Unit is delivered | Summer Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | English |
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| Prerequisites and Co-Requisites | Course succeeds to compulsory courses of previous semester |
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| Name of Lecturer(s) | Personal ID | Name |
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| CUL33 | doc. Ing. Miroslav Čulík, Ph.D. |
| GUR022 | Ing. Petr Gurný, Ph.D. |
| Summary |
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The subject is focused on the particular areas of the financial management and
decision – making of a firm including its relation to the economics surroundings.
The aim is to present the complex view on a firm’s management and micro and macro aspect of entrepreneurial activities. Teaching is based on present situation in the Czech Republic including actual legal changes.
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| Learning Outcomes of the Course Unit |
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The aim of the course is to learn the students fundamental principles of corporate finance.
Students will be able:
- to describe financial systemand to identify basic relationships between company and its surrounding,
- to explain financial statements of a company,
- to analyze financial situation of a company,
- to describe financial sources,
- to valuate an investment projects by applying given criterions.
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| Course Contents |
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1. Financial system. Fundamentals and principles of corporate finance. Goals and objectives of financial decision-making of a company.
2. Impact of taxation and financial markets on financial decision-making of a company.
3. Balance sheet.
4. Optimization of capital structure, costs of capital.
5. Income statement. Revenues, cost and expenses. Profit/loss of a company. Transformation of EBT to tax basis. Distribution of company´s profit.
6. Company´s cash flow. Inflows, outflows and their relationship to revenues and costs and expenses. Format of cash flow statement. Relationship between financial statements.
7. Financial analysis of a company – importance for company, methods, analysis of results.
8. Financial ratios – profitability, liquidity, solvency, activity, other ratios.
9. Current assets management. Classification of current assets, functions. Inventories management.
10. Accounts receivable management,, cash and marketable securities management.
11. Short-term sources of capital.
12. Time value of money. Risk in financial management.
13. Capital budgeting. Methods for investment project valuation.
14. Long-term sources of capital. Internal and external sources of long-term capital.
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| Recommended or Required Reading |
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| Required Reading: |
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DAMODARAN, Answath. Applied Corporate Finance. New York: Wiley, 2018. 638 p. ISBN 978-0-471-66093-4.
DAMODARAN, Answath. Corporate Finance: Theory and Practice. 2nd Edition. New York: Wiley, 2019. 1008 p. 978-0-471-28332-4.
ROSS, A., WESTERFIELD, W. Corporate Finance. 6th Edition, London: McGraw Hill/Irwin, 2022.882 p. ISBN 978-0-07-724612-9.
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BERK, Johnathan and Peter DEMERZO. Corporate Finance. Harlow: Pearson, 2020. 1144 p. ISBN 0273792024.
DLUHOŠOVÁ, Dana, et al. Financial Management and Decision-making of a Company. SAEI, Vol. 28. Ostrava: VSB-TU Ostrava, 2014. 259 p. ISBN 978-80-248-3619-5.
RICHTAROVÁ, Dagmar et al. Financial management and decision-making of a company: workbook with solution. SOT, vol. 15. Ostrava: VSB-TU Ostrava, 2013. 196 p. ISBN 978-80-248-3166-4.
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| Recommended Reading: |
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BENNINGA, S. Principles of Finance with Excel. London: Oxford University Press, 2017. 801 p. ISBN 978-0-19-975547-9.
LASHER, W.R. Financial Management.A Practical Approach. New York: South-Western College Pub, 2018. 837 p. ISBN 978-0-538-74358-7.
ROBINSON, T.R., et al. International Financial Statement Analysis. New York: Wiley, 2018. 828 p. ISBN 978-0-470-28766-8. |
BRIGHAM, Eugene. Financial Management: Theory & Practice. New York: South-Western College Pub, 2019. 1180 p. ISBN 130563229X.
CLAYMAN, Michelle, et al. Corporate Finance: a practical approach. New York: Wiley, 2018. 528 p. ISBN 1118105370.
VERNIMMEN, Pierre et al. Corporate Finance: Theory and Practice. New York: Wiley, 2015. 1056 p. ISBN 0470092254. |
| Planned learning activities and teaching methods |
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| Lectures, Tutorials |
| Assesment methods and criteria |
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| Tasks are not Defined |