Course syllabus PF - Financial Management II (ŠAVŠ - SS 2017/2018)

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Course title:
Financial Management II
Semester: SS 2017/2018
Course supervisor:
Supervising department:
Department of Finance and Accounting (ŠAVŠ)
Prerequisites for registration: Bachelor state examination
Time allowance: full-time, 1/1 (hours of lectures per week / hours of seminars per week)
part-time, 0/8 (lectures per period / seminars per period)
Type of study:
usual
Form of teaching:
lecture, seminar
Mode of completion and credits:
Exam (4 credits)
Course objective:
Upon completition of this advanced course, graduates will be able to understand the modern principles of financial management and decision-making in non-financial enterprises. The course covers the most important issues with which the financial manager in his daily practice encounters, starting with the financial statements and their quality over short-term financial management, financial planning, asset and liability management, the practical use of the results of the financial analysis, to more advanced aspects such as the valuation of assets and entire companies, value aspects of mergers and acquisitions and due diligence, with an emphasis on corporate finance. The course extends from the bachelor's interpretation of complex methods and models and adds examples of current business practices.
 
Course methods:
The course will be conducted through structured seminars. It assumes an active interest of master students more narrowly focused on theoretical and practical problems of financial management.
 
Course content:
1.
Repetition and precisation of the concept of corporate finance: basic terms, financial statements, national and international standardization of financial reporting, cash flow, taxes, goodwill, market and book value of assets, quoted and unquoted companies. (allowance 1/1)
2.
Strategic analysis from the corporate finance view: macroeconomic environment, business cycle, product life cycle and the importance of competition, concepts and possibilities of competing strategies. Business risk and sensitivity analysis. (allowance 1/1)
3.
Operating and non-operating assets, invested capital, financial and capital structure, time value of money in corporate finance. (allowance 1/1)
4.
Use of financial statements and financial analysis, interpretation of results, benchmarking. Cash flows - the importance of cash flow, calculation methods, characterization. Direct and indirect method of calculating cash flow. Possibilities of using Cash Flow in financial management. (allowance 1/1)
5.Capital structure: Basic concepts. The choice between equity and debt, the effect of financial leverage and financial risk. Neoclassical concept of maximizing the firm's value, net of any tax effects, cost, and the possibility of bankruptcy, dividend policy. (allowance 1/1)
6.
Estimating the discount rate. Risk-free interest rate and the risk premium. CAPM, the cost of debt, the required return on equity by debt ratios. (allowance 1/1)
7.
Basic principles of valuation. Business valuation and equity valuation, fundamental and technical analysis of the valuation of shares. (allowance 1/1)
8.
Valuation based on market multiples. (allowance 1/1)
9.
Financial planning, pro forma statements, projections of financial performance and cash flow. (allowance 1/1)
10.
Short-term financial management: practical aspects. (allowance 1/1)
11.
Differences between small and medium-sized enterprises and multinationals: a financial perspective. (allowance 1/1)
12.Advanced topics: mergers, acquisitions and value based management. Financing projects through private equity, LBO transactions, MBO, MBI. (allowance 1/1)
 
Learning outcomes and competences:
After completing the course, student:
 
-
Will analyze the value drivers
-
Will apply independent financial analysis on manufacturing and trade companies
-
Will apply value based management methods and quantify value of assets in real situations

Teaching methods and workload (hours of workload):
Type of teaching method
Daily attendance
Combined form
Direct teaching
     Attendance of lectures
24 h
8 h
     Consultations with thesis supervisor (MT, BT)
0 h
2 h
Self-study
     Course reading and ongoing preparation30 h
46 h
     Composing of individual (seminar) work
16 h
14 h
     Composing of presentation
16 h
14 h
     Preparation for final test
28 h
28 h
Total
114 h112 h
 
Assessment methods:
Requirement typeDaily attendance
Combined form
Term paper
32 %32 %
Presentation32 %
32 %
Final test
36 %
36 %
Total
100 %
100 %
 
Course completion:
Participants will elaborate a selected topic in the form of text output. The aim of the exercises will be a discussion of topics treated by the participants. Each part (i.e. textual and oral presentation) is evaluated by a maximum of 32 points. For successful completition the participants must obtain at least 60% of the points from each individual task components within the semester. Altogether, it is possible to obtain a maximum of 64 points (2 parts x 32 points). Final exam: Written test with open questions, possibly combined with a computational assessment. Oral examination in case of ambiguity. From the tests it is possible to obtain a maximum of 36 points (3 questions x 12 points). To test score counted in the overall evaluation, the student must obtain at least 60% of points (e.g. to answer one question correctly and completely one part).
Rating of the semestral assignment and assessment test are added together and enter into the overall rating, based on which the final grade is awarded according to the following scale: 90-100 excellent, 75-89 very good, 60-74 good, 59 and less failed. Test must include also the students who get full marks from the two semestral assignments.
 
Support for combined/distance forms of study:
Teacher's materials available through the AIS.
 
Reading list:
Basic:
DAMODARAN, A. Corporate Finance.: Theory and Practice. 2nd ed. USA: John Wiley & Sons Ltd, 2001. 982 p. ISBN 0-471-28332-0.

Recommended:
Brigham, E. -- Erhards, M. Corporate Finance: A Focused Approach. 6. vyd. South-Western College Pub, 2016. ISBN 1305637100
Časopis Ekonom (týdeník Hospodářských novin)
Damodaran, A. The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses 3. vyd. Pearson FT Press, 2018. 800 s. ISBN 0134854101
Finance Magazine , vydavatelství Newfinances, s.r.o., online, dostupné z http://www.financemagazine.cz
Koller, T. -- Goedhart, M. -- Wessels, D. Valuation: Measuring and Managing the Value of Companies. 6. vyd. Wiley, 2015. 848 s. ISBN 111887370X

Study plans:
Field of study N-EM-GPFRE Corporate Finance Management in the Global Environment, full-time form, initial period WS 2016/2017, place of teaching Mladá Boleslav
Field of study N-EM-FRP Corporate Finance Management in the Global Environment, part-time form, initial period WS 2016/2017, place of teaching Mladá Boleslav
 
Run in the period of:
WS 2020/2021, SS 2019/2020, WS 2019/2020, SS 2018/2019, WS 2018/2019, WS 2017/2018 (and older)
Course tutor:
doc. Ing. Romana Čižinská, Ph.D. (examiner, instructor)
doc. Ing. Tomáš Krabec, Ph.D., MBA (examiner, instructor, lecturer, supervisor)
Teaching language:
Czech, English
Room: Mladá Boleslav


Last modification made by Ing. Lucie Bydžovská on 06/04/2018.

Type of output: