154-0523/02 – Financial decision-making under risk (FDMuR)

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Ing. Tomáš Tichý, Ph.D.Subject version guarantorprof. Dr. Ing. Zdeněk Zmeškal
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageEnglish
Year of introduction2009/2010Year of cancellation2019/2020
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
GUO001 Ing. Haochen Guo, Ph.D.
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

The aim of the course is to allow the students to: - understand key financial issues under risk and uncertainty - learn how to propose robust solutions of these issues using up-to-date tools and techniques - evaluate the linkage between the return and risk - understand flexible approaches to decision-making - analyze the linkage between primary variables and proposed solutions.

Teaching methods

Lectures
Tutorials

Summary

In this course, fundamental issues of financial decision-making are treated. Special attention is paid to the risk and flexibility. The course extends knowledge obtained in basic corporate finance courses by the aspects of risk and flexibility. As well, it extends financial markets courses by proper mathematical treatment. The aim of the course is to introduce key financial issues and teach the students to propose their robust solutions with up-to-date techniques. The students should be able to analyze the linkage between primary variables and proposed solutions.

Compulsory literature:

BERK, J. and P. DEMARZO. Corporate Finance. 5th ed. Harlow: Pearson, 2023, 1184 p. ISBN 978-1-292-16016-0. HULL, J. C. Option, Futures and other Derivatives. 11th ed. New York: Prentice Hall, 2022, 880 s. ISBN 978-1-292-41065-4. ZMEŠKAL, Z., ČULÍK, M., TICHÝ, T. Financial decision making under risk: workbook with solutions. Ostrava: VSB-TUO, 2013. ISBN 978-80-248-4217-2.

Recommended literature:

BREALEY, R. A., MYERS, S.C., ALLEN, F., EDMANS, A. Principles of Corporate Finance. 14th ed. McGraw-Hill, 2023, 992 s. ISBN 978-1-2-4-08094-6. CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2018, 480 s. ISBN 978-06-911-6080-1. COPELAND, T. E., WESTON, J. F., SHASTRI, K. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4.

Way of continuous check of knowledge in the course of semester

tutorial

E-learning

Other requirements

There are no other requirements on the 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 3. Markowitz model 4. CAPM, APT model. 5. Forward, future and swap contracts. 6. Option contracts, hedging. 7. Option methodology and its application in financial decison-making. 8. Capital structure theory and costs of capital estimation under risk. 9. Investment decision-making under risk. 10. Dividend theory and policy. 11. Company valuation under risk. 12. Acquisitions. 13. Cash management of multinational firm (theory of exchange rates estimation). 14. Cash management of multinational firm.

Conditions for subject completion

Full-time form (validity from: 2009/2010 Winter semester, validity until: 2019/2020 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)		Min. number of pointsMax. počet pokusů
Exercises evaluation and Examination Credit and Examination 100 (100) 51
        Exercises evaluation Credit 35 (35) 18 2
                Writen test Written test 35  18 2
        Examination Examination 65 (65) 33 3
                Writen test Written test 20  10 3
                Oral examination Oral examination 45  23 3
Mandatory attendence participation:

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction



2018/2019 Winter
2017/2018 Winter
2016/2017 Winter
2015/2016 Winter