154-0323/01 – Financial Decision-Making under Risk (FRR )

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Dr. Ing. Zdeněk ZmeškalSubject version guarantorprof. Dr. Ing. Zdeněk Zmeškal
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageCzech
Year of introduction2004/2005Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
KRE330 doc. Ing. Aleš Kresta, Ph.D.
TIC02 prof. Ing. Tomáš Tichý, Ph.D.
VAL35 Ing. Jiří Valecký, Ph.D.
ZME40 prof. Dr. Ing. Zdeněk Zmeškal
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2

Subject aims expressed by acquired skills and competences

In this course, basic issues, approaches and concepts of financial decision-making are treated. Risk and contingency aspects are stressed. The aim of the course is to learn students to process and solve selected problems by means of fundamental decision-making approaches of modern finance under risky conditions. In such a way the students should be able to analyze the linkage among particular input variables and the problem solution efficiently.

Teaching methods

Lectures
Tutorials

Summary

There are basic topics, approaches and concepts applied in this subject from the area of financial decision-making with aspects of risk and contingency. The aim of the subject is provide information and knowledge how to solve selected problems the way, they would be able to apply fundamental decision approaches modern finance under risk.

Compulsory literature:

BERK, Jonathan and Peter DEMARZO. Corporate Finance. 2nd ed. Prentice Hall, 2010. p. 1080. ISBN 978-0132138796. BREALEY, R. A., S. C. MYERS and F. ALLEN. Principles of Corporate Finance. 10th ed. McGraw-Hill, 2010. p. 875. ISBN 978-0077404895. ZMEŠKAL, Z., ČULÍK, M., TICHÝ, T. (2013). Financial decision making under risk: workbook with solutions. Ostrava: VSB-TUO.

Recommended literature:

DAMODARAN, A. (2015). Applied corporate finance. Chichester: Willey. HULL, J. C. (2014). Option, Futures and other Derivatives. 9th Ed. New York: Prentice Hall. LEVY, W., SARNAT, T. M. (1995). Capital Investment and Financial Decisions. New York: Prentice Hall.

Way of continuous check of knowledge in the course of semester

E-learning

Další požadavky na studenta

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Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Proposal methods and evaluation of firm financial plan 2. Financial decision-making criteria under risk – principles, axoms 3. Utility functions, their application in financial decision-making 4. mean-variance models, Markowitz model 5. CAPM model, APT model. 6. Theory of company´s capital structure 7. Capital budgeting, investmnt valuation under risk 8. Dividend theories and policies. 9. Company valuation under risk 10. Acquisitions 11. Forward and futures contracts 12. Option contracts. Hedging. 13. Hedging, methods of hedging, possibilities in financial management 14. Option methodology and its application in financial management 15. Cash management of multinational firm (theory of exchange rates estimation)

Conditions for subject completion

Full-time form (validity from: 2015/2016 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 35 (35) 18
                Writen test Written test 35  18
        Examination Examination 65 (65) 33
                Writen test Written test 20  10
                Oral examination Oral examination 45  23
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2011/2012 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2008/2009 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2007/2008 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2006/2007 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2005/2006 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2004/2005 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Subject block without study plan - EKF - P - cs 2019/2020 Full-time Czech Optional EKF - Faculty of Economics stu. block