BPF_ZAFI Basic Finance

Faculty of Economics and Administration
Autumn 2023
Extent and Intensity
2/0/0. 4 credit(s). Type of Completion: zk (examination).
Taught in person.
Teacher(s)
Oleg Deev, Ph.D. (lecturer)
doc. Ing. Tomáš Plíhal, Ph.D. (lecturer)
Ing. Martina Sponerová, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Tomáš Plíhal, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Mon 14:00–15:50 P101, except Mon 18. 9., except Mon 6. 11.
Prerequisites (in Czech)
! MPF_AFIN Finance (Basics)
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
there are 12 fields of study the course is directly associated with, display
Course objectives
Basic Finance is a balanced first course in finance that offers students perspectives on financial markets and institutions, the world of investments, and the concepts and applications of business financial management. For the student who does not plan to take additional courses in finance, this course provides a valuable overview of the discipline's major concepts. For the student who wants to take additional courses in finance, the overview presented provides a solid foundation upon which future courses can build.

It provides a basic understanding of the complex world of finance that covers an introduction to financial markets, investments, and financial management or business finance. Students will gain an integrated perspective of the interrelationships among these three areas. They will appreciate how businesses and individuals are affected by markets and institutions, as well as of how markets and institutions can be used to meet the goals of individuals or firms.
Learning outcomes
By learning about markets (including gaining knowledge about institutions), investments, and management as the three major strands of finance, students will finish their course with a greater understanding of how these three fields interrelate. Financial markets will be seen as the arena to which businesses and financial institutions go to raise funds, and as the mechanism through which individuals can invest their savings to meet their future goals. The topic of investments is important in facilitating the savings–investment process. Understanding the trade-off of risk and return, as well as the valuation of bonds and stocks, is essential to investors and businesses raising financial capital. Understanding how securities markets work is equally important. Financial management uses information it obtains from securities and other financial markets to efficiently and profitably manage assets and to raise needed funds in a cost-efficient manner. The students will receive a practical introduction to the different disciplines of finance and will better appreciate the relationships among them.
Syllabus
  • 1. Introduction to finance 2. Economic foundations: Money and rates 3. Time value of money 4. Bonds and bond valuation 5. Stocks and stock valuation 6. Historical performance of financial markets 7. Reading week 8. How to think about investing 9. Financial statements 10. Measures of financial health 11. How companies think about investing 12. How firms raise capital 13. Banking and financial institutions
Literature
    required literature
  • DAHLQUIST, Julie R and Rainford KNIGHT. Principles of Finance. OpenStax, Rice University, 2022. info
    recommended literature
  • MELICHER, Ronald W. and Edgar NORTON. Introduction to finance : markets, investments, and financial management. Seventeenth edition. Hoboken: Wiley. xxix, 613. ISBN 9781119561170. 2020. info
  • BREALEY, Richard A., Stewart C. MYERS and Alan J. MARCUS. Fundamentals of corporate finance. Tenth edition. New York: McGraw-Hill Education. xxxi, 728. ISBN 9781260566093. 2020. info
  • VESELÁ, Jitka. Investování na kapitálových trzích. 3. vydání. Praha: Wolters Kluwer. 950 stran. ISBN 9788075982124. 2019. info
  • MISHKIN, Frederic S. and Stanley G. EAKINS. Financial markets and institutions. Ninght edition, global editi. Harlow, England: Pearson. 688 stran. ISBN 9781292215006. 2018. info
  • VERNIMMEN, Pierre. Corporate finance: Theory and Practice. 2017th ed. John Wiley & Sons. 5. vyd. ISBN 978-1-119-45180-8. 2017. info
Teaching methods
Lectures, reading, class discussion.
Assessment methods
The course is completed by a written exam, max 100 points. The final grade is based on the following scale:
A 100 – 91, B 90 – 81, C 80 – 71, D 70 – 61, E 60 – 51, F 50 - 0

Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.

If the student enrolls in the course while going abroad, he must pass all tests and exams upon his return.
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
General note: Přednášky jsou dostupné online a ze záznamu.
Credit evaluation note: K=1,0.
Listed among pre-requisites of other courses
The course is also listed under the following terms Autumn 2009, Autumn 2010, Autumn 2011, Autumn 2012, Autumn 2013, Autumn 2014, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2022.
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