OPF:FINPCFA Corporate Finance A - Course Information
FINPCFA Corporate Finance A
School of Business Administration in KarvinaWinter 2010
- Extent and Intensity
- 2/1/0. 3 credit(s). Type of Completion: zk (examination).
- Teacher(s)
- doc. Ing. Pavla Klepková Vodová, Ph.D. (lecturer)
- Guaranteed by
- Ing. Michaela Roubíčková, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina - 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
- Marketing and Management (programme OPF, B_EKOMAN)
- Syllabus (in Czech)
- 1. Introduction to corporate finance
Development of corporate finance. The corporate form of business according to organization. Origin and development of corporation. Corporate finance and financial management. Corporate finance in market economy.
2. Alternative theories of corporation
Goal of the corporation. Managerial theories - simple managerial model, Baumol model, Williamson model, Marris model. Behavioristic theories. Employee's theories.
3. Agency conflict
Types of agency conflicts, agency costs, managerial compensation. Information asymmetry. Corporate governance models - Anglo-American model, Continental-European model.
4. Corporate financing
Characteristics, advantages and disadvantages of internal and external, long-term and short-term financing. Corporate financing in practice. Equity and debt securities.
5. Dividend policy
Types of dividends. Definition of dividend. Dividends according to shares, forms of dividend, interval of paying. How to pay dividends in the Czech Republic and in the world. Share repurchase as an alternative of dividend policy.
6. Present and future value of investment
Definition of investment. Opportunity costs. Time value of money. Simple present and future value. Other forms of compounding.
7. Special forms of cash flows
Present and future value of cash flows. Special forms of cash flows - annuity, growing annuity, perpetuity, growing perpetuity.
8. Project valuation
Valuation criteria. Return, risk, liquidity. Net present value. Internal rate of return. Profitability index. Payback period. Average accounting return. Advantages and disadvantages of methods. Valuation of independent and mutually exclusive projects.
9. Risk of simple investment
Risk as a part of economy. Risk versus uncertainty. How to determine the probability. Risk of simple investment.
10. Risk of portfolio
Risk of portfolio of two assets. Unique risk and market risk. Correlation coefficient and its use for investment valuation.
11. Capital structure
Searching for optimal capital structure. Theoretical basis. Costs of capital. Costs of equity and debt financing. Financial leverage. Financial risk.
12. Asset management
Working capital, net working capital. Short-term financial policy. Hedging principle and its modifications. Cash management. Costs of holding cash. Baumol model. Miller-Orr model. Credit management. Inventory management, costs of holding inventory. Model Just-in-time.
13. Mergers and acquisition
Principles of mergers and acquisition. Advantages and disadvantages of integration. Synergy. Types of takeovers. Hostile takeovers, takeover defences. Holding. Legal aspects of integration in the Czech Republic
- 1. Introduction to corporate finance
- Literature
- required literature
- 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
- Language of instruction
- English
- Further comments (probably available only in Czech)
- The course can also be completed outside the examination period.
- Enrolment Statistics (Winter 2010, recent)
- Permalink: https://is.slu.cz/course/opf/winter2010/FINPCFA