Financial Management

  • Credits: 5
  • Ending: Examination
  • Range: 20sP
  • Semester: winter
  • Year: 1
  • Faculty of Business Economics with seat in Košice

Teachers

Included in study programs

Corporate Financial Management

Teaching results

The aim of the course is to prepare students for independent practical application of methods and procedures in the financial management of the company.
The result of the training will be the acquisition of detailed information on current theoretical and practical problems of long-term financial managementin the conditions of an advanced market economy.
The emphasis will be on new tools financing in connection with the development of the money, capital and derivatives market - evaluation economic efficiency of investment projects, current assets, quantification cost of capital of the company, valuation of financial investments and derivatives, portfolio theory, dividend policy.
Knowledge:
After completing the course, the student has knowledge of the tasks performed by the financial manager in the company, what goals he pursues, what is his position in the company, what are the basic systems of financial management of the company and knows the financial processes in the company.

Competence:
Ability to evaluate the economic efficiency of investment projects.
Ability to analyze the financial condition of the company.
Ability to determine the need for working capital.
Ability to determine the cost of equity and debt.

Skill:
After completing the course, the student masters the basic disciplines of financial management corresponding to the core knowledge of the 2nd level of study. The student is able to apply the acquired theoretical and practical knowledge of modern financial management in real conditions of a business entity, which is also a basic prerequisite for achieving fundamental changes in business performance. Upon successful completion of this course, students will be able to properly evaluate the effectiveness of investment projects, optimize the financial and capital structure of the company, calculate the cost of equity and debt, and can determine the intrinsic value of basic types of debt securities and financial derivatives.

Indicative content

Consultation:
Content and tasks of financial management.
Analysis of the financial condition of the company.
Management of capital contributions to fixed assets. Methods of evaluating the economic efficiency of investment projects - Part 1.
Management of capital contributions to fixed assets. Methods of evaluating the economic efficiency of investment projects - Part 2.
Current assets financing management.
Sources of capital. Financial and capital structure of the company.
Financial investments, their valuation, profitability and risk.
Portfolio theory and capital asset pricing models.
Financial risks of the company and their mitigation. Financial derivatives and their use in creating investment strategies.
Dividend policy of the company.
Payment system of companies.
Management of international financial relations of companies.
Financial issues of company mergers.

Self-study:
Methods of evaluating the economic efficiency of investment projects.
The impact of financial decisions on the profitability of investment projects.
Methods of determining the need for working capital.
Preparation for written examination no. 1
Calculation of costs of equity and debt, optimization of capital structure.
Models of capital assets valuation.
Yield and riskiness of bonds. Internal value of bonds.
Profitability and riskiness of shares. Internal value of shares. Comparative method.
Model of discounted dividends. Dividend policy.
Calculation of return and riskiness of the portfolio of shares.
Preparation for written examination no. 2

Support literature

Elementary literature:
1. KRÁĽOVIČ, Jozef – VLACHYNSKÝ, Karol. Finančný manažment. 3. preprac. a dopl.
vyd. Bratislava : Iura Edition, 2011. 468 s. ISBN 978-80-8078-356-3.
2. KRÁĽOVIČ, Jozef et al. Finančný manažment : zbierka príkladov. 4. preprac. a dopl. vyd.
Bratislava : Iura Edition, 2011. 235 s. ISBN 978-80-8078-431-7.
Supplementary literature:
1. JINDŘICHOVSKÁ, Irena. Finanční management. 1. vyd. Praha : C. H. Beck, 2013. 295
s. ISBN 978-80-7400-052-2.
2. MARKOVIČ, Peter – TÓTHOVÁ, Alena – KUBRANOVÁ, Magdaléna. Finančný
manažment na prahu 21. storočia. 1. vyd. Bratislava : Vydavateľstvo EKONÓM, 2013.
268 s. ISBN 978- 80-225-3721-6.
3. SIVÁK, Rudolf a kol. Kapitálová štruktúra podnikateľských subjektov. Bratislava : Sprint
2, 2019. 399 s. ISBN 978-80-8971-023-2. 4. BERK, Jonathan – DEMARZO, Peter. Corporate Finance, 4th edition. Harlow, United Kingdom: Pearson, 2017. ISBN 978-01-3442-679-2. 5. BREALEY, Richard et al. Fundamentals Of Corporate Finance, 9th edition. NY: McGraw-Hill Education, 2018. ISBN 978-1-259-72261-5. 6. BREALEY, Richard et al. Principles of Corporate Finance. NY: McGraw-Hill Education, 2016. ISBN 978-1-259-25333-1.

Syllabus

Consultation: Content and tasks of financial management. Analysis of the financial condition of the company. Management of capital contributions to fixed assets. Methods of evaluating the economic efficiency of investment projects - Part 1. Management of capital contributions to fixed assets. Methods of evaluating the economic efficiency of investment projects - Part 2. Current assets financing management. Sources of capital. Financial and capital structure of the company. Financial investments, their valuation, profitability and risk. Portfolio theory and capital asset pricing models. Financial risks of the company and their mitigation. Financial derivatives and their use in creating investment strategies. Dividend policy of the company. Payment system of companies. Management of international financial relations of companies. Financial issues of company mergers. Self-study: Methods of evaluating the economic efficiency of investment projects. The impact of financial decisions on the profitability of investment projects. Methods of determining the need for working capital. Preparation for written examination no. 1 Calculation of costs of equity and debt, optimization of capital structure. Models of capital assets valuation. Yield and riskiness of bonds. Internal value of bonds. Profitability and riskiness of shares. Internal value of shares. Comparative method. Model of discounted dividends. Dividend policy. Calculation of return and riskiness of the portfolio of shares. Preparation for written examination no. 2

Requirements to complete the course

Continuous assessment – written examination of 40%, minimum to pass 21%
Final exam – written examination of 60%, minimum to pass 31%

Student workload

130 hours in total, of which:
• 20 hours of participation in consultations
• 32 hours self-study
• 39 hours preparation for continuous assessments
• 39 hours preparation for final assessment

Language whose command is required to complete the course

Slovak

Date of approval: 11.03.2022

Date of the latest change: 24.01.2022