| Course title | Corporate Finance |
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| Course code | KUF/SZFRP |
| Organizational form of instruction | no contact |
| Level of course | Master |
| Year of study | 2 |
| Semester | Winter and summer |
| Number of ECTS credits | 0 |
| Language of instruction | Czech |
| Status of course | Compulsory |
| Form of instruction | Face-to-face |
| Work placements | This is not an internship |
| Recommended optional programme components | None |
| Lecturer(s) |
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| Course content |
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Corporate Finance 1. Management of long-term assets 2. Types of projects and design stages. Investment project, technical-economic study. Investment in the economy and financial management of a company 3. Pre-investment preparation, identification of capital revenues and expenditures 4. Cost criteria of investment efficiency evaluation 5. Profit criteria of investment efficiency evaluation 6. Net Present Value, Profitability Index, Internal Rate of Return 7. The influence of taxes, interests and inflation on investment decision-making 8. Risk in investment decision-making 9. Volatility of an investment project 10. Models of capital assets evaluation. Capital market line. Security market line 11. Costs of company assets. Debt costs. Equity costs 12. Capital structure and its optimizing. The influence of capital structure on the value of a company 13. Operating and financial leverage and its influence on the capital structure 14. Financing of investment from internal resources. The role of depreciation in internal financing 15. Financing of investment from external resources. Long-term financing. Financing through long-term obligations Obligations, durations, rating and credit quality of obligations. Stock financing. Long-term financing through hybrid instruments. Convertible instruments. Callable obligations. Transferable obligations. Warrants. Option terms. Option evaluation. Binomial model of convertible debts assessment 16. Leasing financing of fiscal assets. Leasing. Discount expenditures on leasing and credit. Net advantage of leasing 17. Mergers and acquisitions. The principle of mergers and acquisitions, the influence of a merger on the price of a company share. Analysis and evaluation of a target company 18. Collective investment scheme. Financial Analysis and Planning 1. Basic concepts of financial analysis. Subject of financial analysis. Users of financial analysis. Sources of information. Objectives and fields of financial analysis . Methods of financial analysis. 2. Systematisation of economic indicators. Indicators and their classification. Indicators systems - organization and structure. 3. Methods of decomposition indices and differences of synthetic indicators. Functional, logarithmic and gradual method. 4. Theory indices. Indices and differences of values. Classification of indices. Decomposition of individual composite indices and aggregate indices. Shift-share analysis. Economic inequalities. 5. Ratio analysis of financial indicators. Funds. Profitability. Activity. Indebtedness. Liquidity. Market indicators. 6. Economic and market value added. EVA entity. EVA equity. 7. Methods of intercompany comparisons. Univariate and multivariate comparison methods. Graphical representation. Methods for determining weights of criteria. 8. Evaluation of business development. Single-factor and two-factor production function. Static and dynamic production function. 9. Labour productivity and efficiency of the property. Average and marginal efficiency of production factors. Substitution of production factors. 10. Proportioning of costs. Cost types. Break-even points. Nonlinear progress of costs and revenues. Operating leverage. Financial leverage. Total leverage. 11. Analysis of the cost/revenue ratio. Cost/revenue indicators and their relationships. Influence of cost/revenues ratio and volume of production on the dynamics of costs and profit. 12. Classification models and methods. Predictive and diagnostic models. Design and evaluation of classification models. Discriminant analysis.
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| Learning activities and teaching methods |
| unspecified |
| Learning outcomes |
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The aim of this course is to provide students with the essential knowledge of a realization of strategic objectives of a company through investment decision-making and capital finance. Students have detailed knowledge and skills of processing and realization of strategic objectives of a company through investment decision-making and capital finance.
Students know basic terminology, theoretical principles, and method used in the field of financial management, business planning, and financial analysis. Students are able to apply the acquired knowledge in practice. |
| Prerequisites |
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(KUF/FINP2 Corporate Finance 2, KUF/FINAP Financial Analysis and Planning)
KUF/CFNAP ----- or ----- KUF/FINAP ----- or ----- KUF/KFNAP and KUF/CFNP2 ----- or ----- KUF/FNP2 ----- or ----- KUF/KFP2 |
| Assessment methods and criteria |
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Oral examination
Students have to prove their complex understanding of the basic terminology and principles of financial management, business planning, and financial analysis, they have to be able to respond to particular questions and to apply theoretical knowledge in practical examples. |
| Recommended literature |
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| Study plans that include the course |
| Faculty | Study plan (Version) | Category of Branch/Specialization | Recommended semester | |
|---|---|---|---|---|
| Faculty: Faculty of Economics | Study plan (Version): Accounting and Financial Management (3) | Category: Economy | 2 | Recommended year of study:2, Recommended semester: Summer |
| Faculty: Faculty of Economics | Study plan (Version): Accounting and Financial Management (3) | Category: Economy | 2 | Recommended year of study:2, Recommended semester: Summer |