JEB045 - Financial Management

Credit: 6
Status: Bachelors - All
Bachelors - elective
BEF - elective
Semester - summer
Course supervisors: prof. Ing. Michal Mejstřík CSc.
Course homepage: JEB045
Literature: Core
Brealey R.A., Myers S.C.: Principles of Corporate Finance, 9th edition, McGraw-Hill, 2007
(or in Czech from Computer Press Praha 2000 (5.vyd)

Bodie Z., Merton R., Finance, Prentice Hall New Jersey,2000, ISBN 0-13-310897-X
Buckley A., Ross S., Westerfield R., J.F. Jaffe, Corporate Finance Europe, McGrawHill, 1998
Shapiro A., Balbier S., Modern Corporate Finance, Prentice Hall London

Description: 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). New: case studies will be added


McKinsey & Company