Subject description - A1M16FIM

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A1M16FIM Financial Management Extent of teaching:2+2c
Guarantors:  Roles:P,V Language of
teaching:
CS
Teachers:  Completion:Z,ZK
Responsible Department:13116 Credits:6 Semester:L

Anotation:

Principles of finance, present value and alternative cost of capital, net present value, valuation of bonds and stocks, investment decision and net present value, risk and alternative cost of capital, risk and return, lease or buy, taxes, inflation and return, financial and real options, option valuation and application, hedging, short term finance, cash flow management.

Course outlines:

1. Introduction of finance, present value, opportunity cost.
2. Annuity, perpetuity, compounded and simple interests.
3. Long term finance. Stock and bonds price.
4. Investment efficiency evaluation techniques. IRR, NPV.
5. The comparing period, an equivalent annual value.
6. Decision making with NPV.
7. Inflation and tax influence to investment decision.
8. Project is not a black box.
9. Capital assets pricing model. Basics of portfolio theory.
10. Capital markets models.
11. Analysis of sensitivity and risk analysis. Financial risk.
12. Options, hedge position, option valuation.
13. Short term financial plans and decision making.
14. Other financial problems.

Exercises outline:

1. Spreadsheets revision focused on financial management.
2. Financial calculus.
3. Loans. Kinds of interests.
4. Depreciation. Tax shield. Homework assignment.
5. NPV and IRR calculations. Mutual eliminate investments.
6. Taxes, finance and NPV.
7. Inflation influence. Case study.
8. Bonds and stock price. Model with constant growth.
9. Expected return and standard deviation of portfolio. Risk free return.
10. Market portfolio. Securities line. Portfolio with maximal return.
11. Reading of financial news.
12. Quiz. Homework deadline.
13. Homework discussion.
14. Put and call options.

Literature:

1. Brealey, R.A., Myers, S.C.: Principles of Corporate Finance. McGraw-Hill. 2007
2. Bodie, Z., Kane, A., Marcus, A.J.: Investments. McGraw-Hill/Irwin. 2006
https://ekonom.feld.cvut.cz/en/student/courses/financial-management

Requirements:

A1M16FIU + knowledge from one of the following courses EPD, UFI, FIP from bachelor study https://ekonom.feld.cvut.cz/en/student/courses/financial-management https://moodle.fel.cvut.cz/courses/A1M16FIM

Webpage:

https://moodle.fel.cvut.cz/courses/A1M16FIM

Subject is included into these academic programs:

Program Branch Role Recommended semester
MPEEM4 Economy and Management of Power Engineering P 2
MPEEM5 Economy and Management of Electrical Engineering P 2
MPIB Common courses V
MPKME1 Wireless Communication V 2
MPKME5 Systems of Communication V 2
MPKME4 Networks of Electronic Communication V 2
MPKME3 Electronics V 2
MPKME2 Multimedia Technology V 2
MPKYR4 Aerospace Systems V 2
MPKYR1 Robotics V 2
MPKYR3 Systems and Control V 2
MPKYR2 Sensors and Instrumentation V 2


Page updated 18.9.2019 12:53:23, semester: Z,L/2020-1, L/2018-9, Z,L/2019-20, Send comments about the content to the Administrators of the Academic Programs Proposal and Realization: I. Halaška (K336), J. Novák (K336)