154-0323/02 – 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 graduateRequirementChoice-compulsory type B
Year1Semesterwinter
Study languageCzech
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
CUL33 doc. Ing. Miroslav Čulík, 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:

BREALEY, R. A., S. C. MYERS a F. ALLEN. Principles of Corporate Finance. 10th ed. McGraw-Hill, 2010, 875 s. ISBN 978-00-774-0489-5. HULL, J. C. Option, Futures and other Derivatives. 9th ed. New York: Prentice Hall, 2014, 896 s. ISBN 978-01-334-5631-8. ZMEŠKAL, Z., M. ČULÍK a T. TICHÝ. Finanční rozhodování za rizika. Sbírka řešených příkladů. 4. vyd. Ostrava: VŠB-TU Ostrava, 2013. 182 s. ISBN 978-80-248-3249-4.

Recommended literature:

BERK, J. and P. DEMARZO. Corporate Finance. 2nd ed. Prentice Hall, 2010, 1080 p. ISBN 978-01-321-3879-6. COPELAND, T. E., J. W. WESTON and K. SHASTRI. Financial Theory and Corporate Policy. 4th ed. Pearson, 2004, 1024 p. ISBN 978-03-211-2721-1. LEVY, W., SARNAT, T. M. Capital Investment and Financial Decisions. New York: Prentice Hall, 1995, 800 p. ISBN 978-01-311-5882-5.

Way of continuous check of knowledge in the course of semester

Credit - written form Examination - composed of two parts (written, oral)

E-learning

Other requirements

There are no other requirements on students.

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: 2019/2020 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
                Písemka Written test 35  18
        Examination Examination 65 (65) 33
                Písemka Written test 20  10
                Ústní zkouška Oral examination 45  23
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2021/2022 (N0688A050001) Information and Knowledge Management P Czech Ostrava 1 Choice-compulsory type B study plan
2021/2022 (N0488A050004) Finance and Accounting (S01) Finance FRP P Czech Ostrava 1 Compulsory study plan
2020/2021 (N0488A050004) Finance and Accounting (S01) Finance FRP P Czech Ostrava 1 Compulsory study plan
2020/2021 (N0688A050001) Information and Knowledge Management P Czech Ostrava 1 Choice-compulsory type B study plan
2019/2020 (N0488A050004) Finance and Accounting (S01) Finance FRP P Czech Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner