Subject description - BE1M16FIM

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BE1M16FIM Financial Management
Roles:  Extent of teaching:2P+2C
Department:13116 Language of teaching:EN
Guarantors:  Completion:Z,ZK
Lecturers:  Credits:6
Tutors:  Semester:L

Web page:

https://moodle.fel.cvut.cz/divize/13116/Katedra_ekonomiky__manazerstvi_a_humanitnich_ved

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, IRR, comparing period, equivalent annual value.
2. Inflation, elasticity and decision making trees
3. Revenues, risk, basics of portfolio theory.
4. CAPM
5. Beta coefficient
6. Price model evaluation, stock and bonds price.
7. Options, hedge position, option valuation.
8. Option valuation, parity of buy/sell option, Black-Scholes formula.
9. Real options.
10. Duration, volatility.
11. Hedging, futures.
12. Term contracts and swap contracts
13. Analysis of sensitivity and risk analysis. Financial risk.
14. Summary, reserve

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., Myers S., Allen F.: Principles of Corporate Finance, McGraw-Hill/Irwin; 11 edition (January 15, 2013)
2. Bodie, Z., Kane, A., Marcus, A.J.: Investments. McGraw-Hill/Irwin. 2006
3. Arnold T.: A Pragmatic Guide to Real Options, Palgrave Macmillan, 2014

Requirements:

Subject is included into these academic programs:

Program Branch Role Recommended semester


Page updated 29.3.2024 09:50:44, semester: Z/2024-5, Z,L/2023-4, Send comments about the content to the Administrators of the Academic Programs Proposal and Realization: I. Halaška (K336), J. Novák (K336)