Course syllabus FMD - Financial Modelling (ŠAVŠ - WS 2015/2016)

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Course title: Financial Modelling
Semester: WS 2015/2016
Course supervisor: doc. Ing. Romana Čižinská, Ph.D.
Supervising department: Department of Finance and Accounting (ŠAVŠ)
Prerequisites for registration: none
Time allowance: full-time, 1/2 (hours of lectures per week / hours of seminars per week)
part-time, 0/12 (lectures per period / seminars per period)
Type of study: usual
Form of teaching: lecture, seminar
Mode of completion and credits: Exam (5 credits)
Course objective:
The goal of the course is to get students acquainted with the common methodological instruments used in the field of business financial management and decisions. Students will be able to use functions and features of MS Excel to solve challenges faced by modern financial managers of companies.
 
Course methods: -- item not defined --
 
Course content:
1.Financial Statements; Cash Flow and Taxes; Financial Planning (allowance 2/2)
 
a.Relationship Between the Accounting Statements
b.Differences Between Profit and Cash Flow
c.Net Working Capital
d.Direct and Indirect Methods of the Cash Flow Calculation
e.Additional Funds Needed Consequences

2.Financial Analysis (allowance 1/1)
 
a.Ratios
b.Du Pont Chart

3.Capital Budgeting and Investment Decisions (allowance 1/1)
 
a.Capital Budgeting
b.Investment Appraisal Techniques
c.Net Present Value and Internal Rate of Return

4.Cost of Capital (allowance 2/2)
 
a.Common Stock versus Preferred Stock
b.Cost of Equity
c.Obligations
d.Cost of Debt; WACC

5.Financial Investments; Portfolio Diversification (allowance 2/2)
 
a.Risk, Return and Liquidity
b.Risk and Return of Single Asset
c.Portfolio; Correlation; Portfolio Diversification; Efficient Frontier; Optimal Portfolio

6.Financial Derivatives (allowance 1/1)
 
a.Put and Call Option
b.Financial Futures

 
Learning outcomes and competences:
After completing the course, student will be able to:
 
-will argue the impacts of different company decisions on the additional funds needed taking WACC into consideration and solve "cyclical problem"
-will assess the efficiency of different forms of the long term investments
-will calculate and interpret the value of the company using discounted cash flow and economic value added valuation methods
-will define main financial goal of the company, argue the possibilities of its measurement using company accounting statements and explain the company financial decisions with the positive contribution to the financial goal achievement
-will evaluate company financial performance and interpret the structure of internally and externally generated cash flows

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures12 h8 h
     Attendance of courses/seminars/tutorials12 h0 h
     Consultations with teacher (part-time form of study)0 h4 h
Self-study
     Course reading and ongoing preparation30 h30 h
     Ongoing evaluation16 h14 h
     Preparation for final test14 h28 h
Total84 h84 h
 
Assessment methods:
Requirement typeDaily attendanceCombined form
Mid-term test(s)64 %30 %
Final test22 %40 %
Final oral exam14 %30 %
Total100 %100 %
 
Course completion:
Credit:
Completion of the two component (midterm) tests in MS Excel is necessary. The midterm covers numerical cases according to the materials in AIS. Minimum of 60% is required to pass every single test. Total Score is 32 points for each test at the maximum (i.e. 2 x 32 points).

Final Exam:
Written test containing 3 theoretical tasks (questions). Total Score is 12 points for each question at the maximum (i.e. 3 x 12 points). Oral exam follows, but is not necessary in the case of excellent written exam. See AIS for the list of questions (tasks). Minimum of 60 % is required to pass the test and achieve final grade.
Final Grade is computed based on the following formula: Two midterm tests (maximum of 2 x 32 points = 64 points) + Final Exam (maximum of 36 points) = maximum of 100 points. The grading scale is as follows:
90 - 100 points = 1
75 - 89 points = 2
60 - 74 points = 3
59 and less = fail
 
Support for combined/distance forms of study:
-- item not defined --
 
Reading list:
Basic:
KISLINGEROVÁ, E. Manažerské finance+CD.: 2. přepracované a doplněné vydání. 2. vyd. Praha: C.H.BECK, 2007. 745 p. ISBN 978-80-7179-903-0.
ROSS, S A. -- JAFFE, J. -- WESTERFIELD, R W. Corporate Finance + CD. 7. vyd. New York: McGraw Hill, 2005. 942 p. ISBN 007-123844-1.

Recommended:
CIPRA, T. Praktický průvodce finanční a pojistnou matematikou. 2. vyd. Praha: Ekopress, 2005. 308 p. ISBN 80-86119-91-2.
VALACH, J. Investiční rozhodování a dlouhodobé financování. 2. vyd. Praha: Ekopress, 2006. 465 p. ISBN 80-86929-01-9.

Study plans:
N-EM-MP Business Administration and Operations, part-time form, initial academic year WS 2014/2015
N-EM-MAR Marketing Management in the Global Environment, part-time form, initial academic year WS 2014/2015
N-EM-FRP Corporate Finance Management in the Global Environment, part-time form, initial academic year WS 2014/2015
N-EM-GPME Marketing Management in the Global Environment, full-time form, initial academic year WS 2014/2015
 
Run in the period of: WS 2018/2019, SS 2017/2018, WS 2017/2018, SS 2016/2017, WS 2016/2017, SS 2015/2016   (and older)
Course tutor: doc. Ing. Romana Čižinská, Ph.D. (examiner, instructor, supervisor)
Teaching language: Czech, English
Room: Mladá Boleslav


Last modification made by Ing. Aleš Kutín on 08/31/2015.

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