OPF:FIUBPCSA Case Studies in Financial Mana - Course Information
FIUBPCSA Case Studies in Financial Management
School of Business Administration in KarvinaSummer 2016
- Extent and Intensity
- 0/2/0. 5 credit(s). Type of Completion: z (credit).
- Teacher(s)
- Ing. Tomáš Heryán, Ph.D. (seminar tutor)
- Guaranteed by
- Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA - Prerequisites
- None
- Course Enrolment Limitations
- The course is also offered to the students of the fields other than those the course is directly associated with.
- fields of study / plans the course is directly associated with
- Business Economics in Trade and Services (programme OPF, B_EKOMAN)
- Course objectives
- The aim of the course is to provide students with cases in business management from point of view of essential knowledge in corporate finance about project and investment valuating, mergers and acquisitions, estimating of capital costs, problematic of risk of investment and portfolio.
- Syllabus
- 1. Time value of money
2. Real value of cash flows
3. Valuating methods
4. Mergers and acquisitions
5. Capital structure
6. Risk
1. Time value of money
Present and future value of cash flows. Compounding and discounting. Effective annual interest rate.
2. Real value of cash flows
Real and nominal value of interest rate. Our investment influent by rate of inflation. Deflation.
3. Valuating methods
Net present value method (NPV) and its practical usage on an example of case study. Advantages and disadvantages.
4. Valuating methods
Internal rate of return method (IRR) and its practical usage on an example of case study. Advantages and disadvantages.
5. Valuating methods
Profitability index method (PI) and its practical usage on an example of case study. Advantages and disadvantages.
6. Valuating methods
Payback period method (PBP) and its practical usage on an example of case study. Advantages and disadvantages.
7. Mergers and acquisitions
Principles, factors, motivations, consequences and evaluation of mergers and acquisitions.
8. Mergers and acquisitions
Examples of mergers and acquisitions in the Czech republic. Costs and benefits for companies. Meaning for managers, customers, shareholders.
9. Mergers and acquisitions
Examples of mergers and acquisitions in others countries. Costs and benefits for companies. Meaning for managers, customers, shareholders.
10. Capital structure
Own and foreign financial sources. Searching for optimal capital structure. Theoretical basis. Costs of capital. Costs of equity and debt financing. Financial leverage. Financial risk.
11. Capital structure
Capital costs, WACC. Costs of equity and debt financing. Tax shield.
12. Risk
Magical triangle. Risk of simple investment. Risk as a part of economy. Risk versus uncertainty. How to determine the probability. Expected rate of profit, variation coefficient.
13. Risk
Risk of portfolio of two assets. Specific and systematic risk. Diversification of risk. Correlation coefficient and its use for investment valuation.
- 1. Time value of money
- Literature
- required literature
- WATSON, D., HEAD, A. I. Corporate Finance. Priniples & Practice. Prentice Hall, 2007. ISBN 13: 978-0-273-706. info
- ROSS, SR., WESTERFIELD, RW., JORDAN, BD. Fundamentals of Corporate Finance (7th Edition). Boston: McGraw-Hill, 2006. ISBN 0-07-319262-7. info
- BREALEY, A., MYERS, SC., ALLEN, F. Corporate Finance. Boston: McGraw-Hill, 2005. ISBN 0-07-111795-4. info
- recommended literature
- Various readings from The Economist, The Euro and other financial magazines. info
- BLOCK, SB., GEOFFREY, GA. Foundations of Financial Management. Boston: McGraw-Hill, 2005. ISBN 0-07-284229-6. info
- MADURA, J. International Corporate Finance. New York: Thompson South-Western, 2005. ISBN 0-32-432382-4. info
- BURKLEY, A., ROSS, SA., WESTERFIELD, RW., JAFFE, JF. Corporate Finance Europe. Cambridge: McGraw-Hill, 2004. ISBN 0-256-13473-1. info
- Teaching methods
- Seminar classes
- Assessment methods
- Credit
- Language of instruction
- English
- Further comments (probably available only in Czech)
- The course can also be completed outside the examination period.
- Teacher's information
- Compulsory attendance at seminars 25 %.
Seminar paper, seminar discussions, final test
Activity Difficulty [h] Ostatní studijní zátěž 89 Seminář 26 Zápočet 30 Summary 145
- Enrolment Statistics (Summer 2016, recent)
- Permalink: https://is.slu.cz/course/opf/summer2016/FIUBPCSA