Description:

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.

Contents:

1. Introduction to financial management
2. Accounting - principles, financial statements
3. Accounting 2 - analysis of statements, financial ratios
4. Present value concept, basic tasks
5. Advanced PV calculations - annuity and perpetuity factors, valuation of bonds
6. Financial decision criteria - NPV, IRR, payback period, profitability index
7. Complex tasks and NPV calculation
8. Valuation of common stock
9. Introduction to portfolio theory - diversification, beta coefficient
10. Risk and return - CAPM, APT
11. Capital budgeting and risk
12. Capital structure - WACC, leverage
13. Risk and project valuation - sensitivity analysis, scenario analysis, decision trees
14. Reserve lesson

Seminar contents:

1. Introduction to financial management
2. Accounting - principles, financial statements
3. Accounting 2 - analysis of statements, financial ratios
4. Present value concept, basic tasks
5. Advanced PV calculations - annuity and perpetuity factors, valuation of bonds
6. Financial decision criteria - NPV, IRR, payback period, profitability index
7. Complex tasks and NPV calculation
8. Valuation of common stock
9. Introduction to portfolio theory - diversification, beta coefficient
10. Risk and return - CAPM, APT
11. Capital budgeting and risk
12. Capital structure - WACC, leverage
13. Risk and project valuation - sensitivity analysis, scenario analysis, decision trees
14. Reserve lesson

Recommended 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

Keywords:

finance, project evaluation

Abbreviations used:

Semester:

• W ... winter semester (usually October - February)
• S ... spring semester (usually March - June)
• W,S ... both semesters

Mode of completion of the course:

• A ... Assessment (no grade is given to this course but credits are awarded. You will receive only P (Passed) of F (Failed) and number of credits)
• GA ... Graded Assessment (a grade is awarded for this course)
• EX ... Examination (a grade is awarded for this course)
• A, EX ... Examination (the award of Assessment is a precondition for taking the Examination in the given subject, a grade is awarded for this course)

Weekly load (hours per week):

• P ... lecture
• C ... seminar
• L ... laboratory
• R ... proseminar
• S ... seminar