Applied Corporate Finance

Teachers

Included in study programs

Teaching results

Upon successful completion of this course, students should well comprehend the concepts, tools and techniques used in corporate practice. Students will refresh their quantitative skills from their previous studies, complement them with more sophisticated concepts and integrate them with practical applications and challenges that corporation managers face in their daily operation. The course prepares students not just in terms of knowledge and applications, but mainly in terms of understanding corporate finance in its complexity of financial decisions that must be considered.
I. Knowledge base and understanding
After completing this course, students should be capable of:
• thoroughly understanding concepts and tools of short-term and long-term financing, their character, specific features and their application in corporate practice
• smoothly reading through corporate financial statements in order to undertake financial planning and budgeting.
• financial decision-making thorough understanding of financial situation, cost of capital in short and long run and consequent financing options, as well as able to propose financial strategies and design proper policies of a company.
II. Skills and competence
After completing this course, students should be able to:
• analyse and implement investment strategies of a company
• propose corporate policy in terms of strategy, risk management, financing and investment based of good understanding of all available tools of corporate finance.

Indicative content

• Financial Statements and Analysis. Stockholder report. Financial, profitability and market ratios.
• Cash flow analysis. Financial Planning. Cash budgeting
• Refresher on the risk and return, interest rates and bond valuation.
• Debt and Equity Capital. Common and preferred stock, its legal standing and valuation
• Capital budgeting techniques and decision process in different stages corporate life.
• Cost of capital in the long run. Back to investment decision making. Marginal cost of preferred stock, common stock and long-term debt.
• Leverage and capital structure.
• Dividend policy. Types of policies, its forms and factors of relevance.
• Short term financial decisions. Inventory management. Cash conversion cycle. Short term loans.
• Hybrids and derivative securities. Their structure and use.
• Mergers and joint ventures, leverage buyouts, reorganisation, liquidation and bankruptcy.

Support literature

• Gitman L.J, a kol., 2014, Principles of Managerial Finance, Pearson. 14th edition
• Čaplanova, A., Hloušková J., Sivak R., Tsigaris, P., 2017, A Behavioral portfolio approach to multiple job holdings, Review of Economics of the Household, Vol.15 (2), pp. 669-689.
• Hloušková J., Mikócziová, J., Sivak R., 2014, Capital Income Taxation and Risk-Taking under Prospect Theory: The Continuous Distribution Case, Czech journal of economics and finance, Vol.64 (5) pp. 374-391.
• ČAPLÁNOVÁ, Anetta - SIVÁK, Rudolf - HUDSON, John. Vplyv priamych zahraničných investícií na inovačnú činnosť firiem. [The impact of foreign direct investment on firms' innovation activities]. In Politická ekonomie, ISSN 0032-3233, 2012, roč. 60, č. 6, s. 764-779.
• BELANOVÁ, Katarína - GERTLER, Ľubomíra - SIVÁK, Rudolf. “Too Much Debt Will Kill You”: Although Not in Central Europe, Yet. In Ekonomický časopis, ISSN 0013-3035, 2020, roč. 68, č. 10, s. 981-1001.

Requirements to complete the course

100% final exam.

Student workload

1 credit = 26 hours, i.e. total student load = 8 credits * 26 hours
Student workload: 208 hours
consultations – 30 hours, studies and preparation – 100 hours, preparation final exam – 78 hours

Language whose command is required to complete the course

slovak

Date of approval: 06.02.2023

Date of the latest change: 24.01.2022