KHFMAN Financial Management

Faculty of Economics and Administration
Autumn 2008
Extent and Intensity
0/0. 5 credit(s). Type of Completion: k (colloquium).
Teacher(s)
Ing. Libor Dobrý (lecturer)
Mgr. Ing. Milan Sedláček, Ph.D. (seminar tutor)
Guaranteed by
doc. Ing. Bc. Petr Suchánek, Ph.D.
Department of Corporate Economy - Faculty of Economics and Administration
Contact Person: Vlasta Radová
Timetable
Sat 4. 10. 12:50–16:15 P106, Sun 26. 10. 8:30–11:50 P102, Sun 23. 11. 8:30–11:50 P103
Prerequisites
Corporate economics II, Financial accounting II, Foundations of Corporate Finance
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
At the end of this course, students should be able to:
- analyze the balance sheet and profit and loss account to know how to compile evaluation indicators of a firm (in financial terms),
- assemble tens of indicators from various areas of the company,
-know what the alternative costs are, and how they can be calculated in the company,
-know what the pyramidal analysis is and how it is compiled,
-know what reputable and bankruptcy models are and to compile them,
-know how to comprehensively assess the financial situation and have concept of financial management and decision-making in the company.
Syllabus
  • 1. Introduction, fundamental terms, statements and methods used – approximation to the content of the course, condition for obtaining colloquium – What is financial management and financial analysis, their application and their limitation.
  • 2. Vertical analysis of balance-sheet and income statement. Students will try this on a model example. They will try it with their own data: Vertical analysis of balance-sheet (base, time perspective) - Vertical analysis of income statement (base, time perspective) – strengths and weaknesses of both analyses – analysis of cause and effect.
  • 3. Horizontal analysis of balance-sheet and income statement. Students will try this on a model example. They will try it with their own data: Horizontal analysis of balance-sheet (base, time perspective) – Horizontal analysis of income statement (base, time perspective) – strengths and weaknesses of both analyses – analysis of cause and effect.
  • 4. Ratio indicators (profitability, cash-flow, liquidity). Students will try this on a model example. They will try it with their own data: - construction of indicators of profitability, cash-flow and liquidity – possible alternative of other constructions, relationships and predictability of indicators. Strengths and weaknesses of indicators - analysis of cause and effect.
  • 5. Ratio indicators (activity, indebtedness and capital market). Students will try this on a model example. They will try it with their own data: - construction of indicators of activity, indebtedness and capital market – possible alternative of other constructions, relationships and predictability of indicators. Strengths and weaknesses of indicators - analysis of cause and effect.
  • 6.Financial leverage and operating leverage in company. Students will try this on a model example. They will try it with their own data: - construction of financial leverage and its influence on the effectiveness of company, construction of operating leverage and its influence on the effectiveness of company – possible alternative of other constructions, relationships and predictability of indicators. Strengths and weaknesses of both leverages - analysis of cause and effect
  • 7.Alternative costs I. Students will try this on a model example. They will try it with their own data: - definition and problem of construction of alternative capital costs – weighted average costs of capital weighted (WACC) and its construction - usage CAPM model in the WACC construction Strengths and weaknesses of both calculations - analysis of cause and effect 8.Alternative costs II. Students will try this on a model example. They will try it with their own data: - usage of modular formula in the WACC construction – practical demonstration of WACC calculation from modular formula – analysis of differences in calculation from modular formula and from CAPM model, predictability of both calculation - analysis of cause and effect.
  • 9.EVA indicator. Students will try this on a model example. They will try it with their own data: construction of indicator from the data gained from capital market – construction of indicator from CAPM model, construction of indicator from modular formula – analysis of different construction of indicator and its predictability. Strengths and weaknesses of both constructions - analysis of cause and effect
  • 10. Pyramidal analysis. Students will try this on model example. They will try it with their own data: Du-pont pyramidal analysis – Comparison of different pyramidal analyses and its predictability. Strengths and weaknesses of both constructions - analysis of cause and effect
  • 11.Synthetical indicators (value models). Students will try this on a model example. They will try it with their own data: Brief summary of selected value models – strength and weakness analysis of these models – practical calculation of selected value models and their analysis - analysis of cause and effect
  • 12.Synthetical indicators (bankrupt models). Students will try this on a model example. They will try it with their own data: Brief summary of selected bankrupt models – strength and weakness analysis of these models – practical calculation of selected bankrupt models and their analysis - analysis of cause and effect
  • 13.Comprehensive evaluation of a company’s financial situation. Students will try this on a model example. They will try it with their own data: - synthesis of methods of financial analysis – financial management – practical demonstration of financial decisions on the selected company – individual reflection of the companies analysed .
Literature
  • SUCHÁNEK, Petr. Finanční management (Financial Management). 1. vyd. Brno: Masarykova univerzita, 2007. 128 pp. DSO 1. ISBN 978-80-210-4277-3. info
  • SEDLÁČEK, Jaroslav. Účetní data v rukou manažera (The accounting dates in the hand of manager). 2. doplněné vydání. Praha: Computer Press, 2001. 220 pp. business books. ISBN 80-7226-562-8. info
  • SUCHÁNEK, Petr. Podnikohospodářská analýza (The analyse of business economy). 1. vyd. Brno: Masarykova univerzita, 2006. 110 pp. Monografie 1. ISBN 80-210-3985-X. info
Assessment methods
Students have to work up a seminar paper based on the analysis of financial data of a particular company. Results of this analysis will serve as the basis for colloquium. Students will discuss both the financial situation of the company and its causes including intended solution there.
Language of instruction
Czech
Further Comments
The course can also be completed outside the examination period.
The course is taught annually.
The course is also listed under the following terms Autumn 2003, Autumn 2004, Autumn 2005, Autumn 2006, Autumn 2007.
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