FIN804 Financial Decisions

School of Business Administration in Karvina
Winter 2006
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: z (credit).
Guaranteed by
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
This course will require prior finance knowledge. The finance concepts that a student should have some knowledge of are, time value of money and bond and stock valuation.
Syllabus (in Czech)
  • Struktura výkladu:
    1. Review time value of money, stock and bond valuation, Markowitz portfolio theory, Net
    2. Lecture on Ch. 14, Questions/Problems 13.3, 13.8, 13.10, 13.13, 13.15.
    3. Lecture on Ch. 15, Questions/Problems 14.1, 14.2, 14.3, 14.4, 14.7.
    4. Lecture on Ch. 16 (Skip section 16.6, Appendix A and Appendix B), Questions/Problems 15.1, 15.2, 15.3, 15.4, 15.5, 15.8, 15.12, 15.13, 15.16.
    5. Lecture on Ch. 17, Questions/Problems 16.1, 16.2, 16.4, 16.5, 16.7, 16.9
    6. Lecture on Ch. 18 (Skip Appendix), Questions/Problems 17.2, 17.3, 17.5, 17.7.
    7. Lecture on Ch. 19, Questions/Problems 18.2, 18.5, 18.8, 18.10, 18.16.
    8. Lecture on Ch. 20, Questions/Problems 19.5, 19.6, 19.7, 19.9.
    9. Lecture on Ch. 21, Questions/Problems 20.1, 20.4, 20.5, 20.6, 20.8, 20.9.
    10. Lecture on Ch. 23 (Skip Appendix), Questions/Problems 21.3, 21.4, 21.6, 21.7, 21.9, 21.16.
    11. Lecture on Ch. 24, Questions/Problems 23.2, 23.3, 23.4, 23.5, 23.6.
    12. Lecture on Chs. 25 (Only Sections 25.1 and 25.2) and 26, Questions/Problems 24.5, 24.6, 24.10, 24.13, 24.14, 25.1.
    13. Lecture on Ch. 30, Questions/Problems 26.2, 26.8, 26.11, 30.1, 30.3, 30.4, .
    Obsah kurzu:
    1. Use the idea of cumulative abnormal rates of return (discussed in Chapter 13) to evaluate a couple of events on the Prague Stock Exchange (obtain data from HBS guide to Czech securities-on computer network at Silesian university).
    2. Use the HBS guide to Czech securities to study what kinds of firms pay dividends and the amount/rate of the dividends. Dividend policy discussed in Chapter 18.
    3. Use the HBS guide to study the debt/equity capital structure for various firms in various industries in the Czech Republic. Capital/financial structure discussed in Chapters 15, 16.
    4. Use the HBS guide to study where firms obtained funds to finance investments in 1994. Sources and uses of funds discussed in Chapter 14.
    5. Use the Excel spreadsheet program (with special functions) to illustrate how to calculate the value of a call option using the Black-Scholes option pricing model. Black-Scholes Option Pricing Model discussed in Chapter 21.
    6. Use the Excel spreadsheet program (special functions) to illustrate how to calculate the price, yield and duration for a bond. The pricing, rate of return and duration of bonds is discussed in Chapter 24.
    7. Use the Excel spreadsheet program to analyze a leasing problem. Use examples in Chapter 23 in the textbook.
    8. Use the Excel spreadsheet program with graphs to analyze the expiration payoffs from buying and writing put options and buying and writing call options. The payoff graphs are discussed in Chapter 21.
    9. Write about how knowledge of options can be used to evaluate investments in "real" assets. See section 21.11 and obtain article from teacher.
    10. Use the Excel spreadsheet program to illustrate how to construct a cash budget. See discussion of cash budget in Chapter 26 and get handout from teacher.

Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Winter 1990, Summer 1991, Winter 1991, Summer 1992, Winter 1992, Summer 1993, Winter 1993, Summer 1994, Winter 1994, Summer 1995, Winter 1995, Summer 1996, Winter 1996, Summer 1997, Winter 1997, Summer 1998, Winter 1998, Summer 1999, Winter 1999, Summer 2000, Winter 2000, Summer 2001, Winter 2001, Summer 2002, Winter 2002, Summer 2003, Winter 2003, Summer 2004, Winter 2004, Summer 2005, Winter 2005, Summer 2006, Summer 2007, Winter 2007, Summer 2008.
  • Enrolment Statistics (Winter 2006, recent)
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