Subject description - BD1M16FIM1

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BD1M16FIM1 Financial Management Extent of teaching:2p+2s
Guarantors:Starý O. Roles:PZ Language of
teaching:
CS
Teachers:Bemš J., Starý O. Completion:Z,ZK
Responsible Department:13116 Credits:5 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, IRR, comparing period, equivalent annual value.
2. Inflation, elasticity and decision making trees
3. Revenues, risk, basics of portfolio theory.
4. CAPM
5. Definition of 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 option. timed and securited options
10. Durace, volatility.
11. Hedging, futures.
12. Term contracts and swao 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:

Webpage:

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

Subject is included into these academic programs:

Program Branch Role Recommended semester
MKEEM4_2018 Common courses PZ 2


Page updated 14.6.2019 17:52:56, 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)