154-0323/01 – Financial Decision-Making under Risk (FRR )
| Gurantor department | Department of Finance | Credits | 5 |
| Subject guarantor | prof. Dr. Ing. Zdeněk Zmeškal | Subject version guarantor | prof. Dr. Ing. Zdeněk Zmeškal |
| Study level | undergraduate or graduate | Requirement | Compulsory |
| Year | 1 | Semester | winter |
| | Study language | Czech |
| Year of introduction | 2004/2005 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Follow-up Master |
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:
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
Occurrence in study plans
Occurrence in special blocks