FIN902S Corporate Finance A

School of Business Administration in Karvina
Winter 2009
Extent and Intensity
1/2/0. 5 credit(s). Type of Completion: zk (examination).
Guaranteed by
Ing. Michaela Roubíčková, Ph.D.
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)
The purpose of this course is to develop an understanding of the evolving theory of Corporate Finance so that the students can evaluate the firm's investment, short-term and long-term financing in keeping with an objective of maximizing shareholders wealth. This course presents an application of analytical techniques to a variety of problems in corporate finance necessary for a solid understanding of the environment in which financial decisions are made.
Syllabus (in Czech)
  • Topics covered:
    1. Corporate Finance - An Overview
    What is corporate finance? Corporate securities as contingent claims on total firm value, the corporate firm, goals of the firm, the theories of firm.
    2. Capital Budgeting
    The financial market economy, the competitive market, the basic principles, making consumption choices, corporate investment decision-making,
    3. Investment - Basic Investment Rules
    Future value, present value, net present value. Simplifications - perpetuity, growing perpetuity, annuity, growing annuity. Basic investment rules - net present value, internal rate of return, profitability index, payback period, discounted payback period. Net present value and capital budgeting, net present value and inflation.
    4. Risk Concepts and Valuation
    Risk statistics, normal distribution and its implications for standard deviation, discount rate for risky projects, risk of simple portfolio.
    5. Capital Structure
    Influence of capital structure on firm's value, Modigliani and Miller analysis, costs of capital, financial leverage and firm value.

    6. Long-term Financing
    Issuing equity securities to the public, long-term debt, the public issue of bonds, warrants and convertibles, leasing, hedging risk.
    7. Short-term Financing
    Tracing cash and net working capital, the operating cycle and the cash cycle, cash budgeting and cash management, credit management. The decision to grant credit: risk and information, optimal credit policy, credit analysis.
    8. International Corporate Finance
    International capital budgeting, international financial decisions, international capital structure, exchange-rate risk

Literature
    required literature
  • BLOCK, SB, GEOFFREY, GA . Foundations of Financial Management. Boston: McGraw-Hill,, 2005. ISBN 0-07-284229-6. info
  • BURKLEY, A., ROSS, SA., WESTERFIELD, RW., JAFFE, JF. Corporate Finance Europe. Cambridge: McGraw-Hill, 2004. ISBN 0-256-13473-1. info
    not specified
  • ROSS, SR, WESTERFIELD, RW, JORDAN, BD . Fundamentals of Corporate Finance 7th Edition,. Boston: McGraw-Hill, 2006. ISBN 0-07-319262-7. info
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, Winter 2006, Summer 2007, Winter 2007, Summer 2008, Winter 2008, Winter 2010, Winter 2011.
  • Enrolment Statistics (Winter 2009, recent)
  • Permalink: https://is.slu.cz/course/opf/winter2009/FIN902S