Financial Management JEB045

Financial Management 2020/2021

The course is intended for undergraduate students and focuses on basic issues of financial management and corporate finance. At the beginning, some terms of corporate finance will be presented (financial analysis of the company´s statements, criteria for investment decisions under risk conditions etc.). As background to corporate finance, a present value "PV" of cash flows is outlined (the concept of PV is important for the calculation of the price of bonds and shares, project evaluation, for calculation of duration etc.). Furthermore, terms such as compound and simple interest and discount factor will be clarified. Further lectures will present a basic model of the capital market - capital asset pricing model (CAPM), security market line (SML) and its shifts as a result of risk aversion and inflation as well. The last part of the course deals with calculation and application of α, β - coefficients for estimating the price of common stocks and bonds which are used in analyzing companies´ financial costs. This approach permits integration of various financing alternatives with respect to cost of capital (weighted average costs of capital - WACC).

Tutorial requirements and deadlines:

-       1 March, 2021: Project – selection of a company

-       25 April, 2021: Project – submission deadline

-       10 May, 2021: Project – presentations

Course requirements:

1. Project – financial analysis and valuation of company (max 40 pts)
2. Presentation (max 10 pts)
3. Bonus points (max 10 pts)
4. Final exam (max 40 pts)

 Note that you need at least 20 pts from the final exam and at least 51 pts in total to pass the course.  

Final grades:

A          excellent                      91-100 pts

B          very good                     81-90  pts

C          good                             71-80  pts

D          satisfactory                   61-70  pts

E          satisfactory -                 51-60  pts

F          failed                               0-50  pts

Note: You should register in SIS for this course and then enrol in Moodle. However, if you also register for the project using our online Google form and then at a later time you decide to quit the course you will get grade "F" (4) in SIS.