BPF_AFMA Financial Management

Faculty of Economics and Administration
Autumn 2025
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
In-person direct teaching
Teacher(s)
prof. Ing. Štefan Lyócsa, PhD. (lecturer)
Andrea Rigamonti, B.Sc., M.Sc., Ph.D. (lecturer)
prof. Ing. Štefan Lyócsa, PhD. (seminar tutor)
Andrea Rigamonti, B.Sc., M.Sc., Ph.D. (seminar tutor)
Guaranteed by
prof. Ing. Štefan Lyócsa, PhD.
Department of Finance – Faculty of Economics and Administration
Contact Person: Kristina Charvátová
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Wed 16:00–17:50 P312, except Wed 17. 9., except Wed 5. 11.
  • Timetable of Seminar Groups:
BPF_AFMA/01: Wed 18:00–19:50 P104, except Wed 17. 9., except Wed 5. 11., Š. Lyócsa, A. Rigamonti
BPF_AFMA/02: Thu 16:00–17:50 S309, except Thu 18. 9., except Thu 6. 11., Š. Lyócsa, A. Rigamonti
Prerequisites
The use of calculators (preferably the use of own personal laptops with spreadsheet program) is required during seminars.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 58 student(s).
Current registration and enrolment status: enrolled: 59/58, only registered: 1/58
fields of study / plans the course is directly associated with
Abstract
The course offers an introductory insight into key topics of financial management. The objective of the course is to develop an understanding about the ideas and methods of valuing investments and companies, and understand the basic challenges of financing firms and their activities (investments). Emphasis is placed on connecting evaluation and financing decisions as the two are closely related.
Learning outcomes
At the end of this course a student will be able to:
- understand key ideas in valuation and financing decisions;
- calculate the value of an investment;
- value simple bond instruments;
- perform a quantitative and qualitative risk-return analysis;
- understand the concept of opportunity costs and the costs of capital;
- identify environmental factors that influence financing decisions.
Key topics
  • 1. Introduction to the corporation and financial markets.
  • 2. Introduction to financial statements: balance sheet, income statement, statement of stockholder’s equity, statement of cash flows.
  • 3. Introduction to financial statements analysis: profitability ratios, asset management ratios, liquidity ratios, leverage ratios, efficiency ratios, DuPont equation.
  • 4. General evaluation principles. Present value of some common investments. Amortized loans. Investment decisions rules.
  • 5. Interest rates. Valuing bonds.
  • 5. Weighted average cost of capital. Valuing stocks.
  • 6. Returns and risk. Estimation windows. Mean and variance of a portfolio.
  • 7. The CAPM model. Estimation of CAPM parameters.
  • 8. Capital structure in a perfect market. Payout policy.
  • 9. Derivatives. Forwards. Futures. Swaps. Options.
  • 10. Hedging. Hedging with futures. Hedging with forwards. Hedging with options.
  • 11. Leasing.
Study resources and literature
    required literature
  • BERK, Jonathan B. and Peter M. DEMARZO. Corporate finance. Sixth edition, Global editio. Harlow, England: Pearson, 2024, 1195 stran. ISBN 9781292446318. info
  • BRIGHAM, Eugene F.; Michael C. EHRHARDT and Roland FOX. Financial management : theory & practice. EMEA edition. Hampshire: Cengage Learning, 2016, xiv, 622. ISBN 9781473729605. info
    recommended literature
  • HULL, John. Options, futures, and other derivatives. Global edition. Harlow, England: Pearson, 2022, 880 stran. ISBN 9781292410654. info
  • BREALEY, Richard A.; Stewart C. MYERS and Alan J. MARCUS. Fundamentals of corporate finance. Tenth edition. New York: McGraw-Hill Education, 2020, xxxi, 728. ISBN 9781260566093. info
  • BRIGHAM, Eugene F. and Louis C. GAPENSKI. Intermediate financial management. 4. ed. Philadelphia: Dryden Press, 1993, xxvii, 112. ISBN 0030754828. info
Approaches, practices, and methods used in teaching
Lectures sketch the key ideas behind important concepts of Financial management. Seminars are oriented towards increasing practical skills needed to value investments, support various types of financing decisions.
Method of verifying learning outcomes and course completion requirements
One mandatory assignment to be done at home will be given to the students and it will contribute to the final grade.
Participation to the seminars is mandatory. Maximum 3 absences are allowed in order to be admitted to the final exam.
Grading is in accordance with the internal guidelines of the Faculty of Economics and Administration of Masaryk’s University and is based on a midterm exam (40%) and final exam (60%). Points from exams are accumulated. Passing the midterm is not mandatory but students who don't will have to be tested on the entire program during the final exam.
The exams are in written form and contain short theoretical questions and exercises.
The final grade scale is the following:
100 - 92 % - A
91 - 84 % - B
83 - 76 % - C
75 - 68 % - D
67 - 60 % - E
less than 60 % - F
Alternate completion
The same above-mentioned requirements for completing the course apply to students studying abroad (e.g., Erasmus) with an individual study plan (ISP), except for the compulsory attendance of seminars. Students are required to contact the lecturer to discuss the activities replacing the seminars attendance.
Language of instruction
English
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
The course is also listed under the following terms Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2022, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (recent)
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