Subject description - AE0B16FIP

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AE0B16FIP Corporate Finance Extent of teaching:2P+2S
Guarantors:Beneš M. Roles:  Language of
teaching:
EN
Teachers:Beneš M. Completion:Z,ZK
Responsible Department:13116 Credits:4 Semester:Z,L

Anotation:

Principles of finance, present value and alternative cost of capital, financial calculus, long-term finance, valuation of bonds and stocks, investment decision and net present value, IRR, comparison time period, annual equivalent value, inflation and return, capital asset pricing model, portfolio, sensitivity analysis and risk, WACC.

Course outlines:

1. Introduction of finance, present value, opportunity cost.
2. Anuitty, perpetuitty, compounded and simple interests.
3. Long term finance. Stock and bonds price.
4. Investment efficiency evaluation techniques. IRR, NPV.
5. Complex financian evaluation.
6. The comparison period, an equivalent annual value.
7. Decision making with NPV.
8. Inflation and tax influence to investment decision.
9. Project is not a black box.
10. Capital assets pricing model. Introduction to the theory of portfolio.
11. Sensitivity and risk analysis. Financial risk.
12. Discount rate, debt, taxes, WACC.
13. Other financial problems.Reserve.

Exercises outline:

1. Introduction of spreadsheets use focused on financial management.
2. Financial calculus.
3. Loans. Kinds of interests calculation.
4. Depreciation. Tax shield. Group project assignment.
5. NPV and IRR calculations. Mutually exclusive investments.
6. Taxes, finance and NPV.
7. Comparison period. Complex projects.
8. Complex case of multiple variant evaluation.
9. Bonds and stock price. Model with contant growth.
10. Expected return and standart deviation of portfolio.
11. Risk free return. Market portfolio. Securities market line.
12. Discount rate - debt, taxes, WACC
13. Assestment. Reserve.

Literature:

1. Brealey, R.A., Myers, S.C. Allen F. Principles of Corporate Finance. McGraw-Hill. 2007
2. Sharpe, W.F., Alexander G.J. Investments. USA: Prentice-Hall, Inc. 1990

Requirements:

No prerequisites.

Keywords:

finance, project evaluation

Subject is included into these academic programs:

Program Branch Role Recommended semester


Page updated 17.1.2020 17:52:14, 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)