The students will understand the strategic dimension of fi-nance.
They will develop the ability to calculate cash flows on their own. They will understand the relation between risk and return and be able to use their knowledge for evaluating decisions, especially in the area of capital budgeting.
They will be able to analyse the characteristics of equity and debt financing; based on this, they will be able to evaluate finance situations and take financing decisions.

Introduction

• CFO Agenda and the Finance Function

• Finance & Strategy

Cash Flow Calculation

• Balance Sheet and Income Statement

• Statement of Cash Flows

• Free Cash Flow (FCF)

Capital Budgeting

• NPV, IRR

• Advanced Forms: Real Options

Capital Market Theory

• Risk and Return: CAPM

• Cost of Capital; Leverage

Capital Structure

• Role of Equity and Debt

• Modigliani/Miller Model

• Trade-off Theory

Dividend Policy

• Residual Theory

• Hillier, D.; Ross, St. A.; Westerfield, R. W.; Jaffe, J. F.; Bradford, J.: Corporate Finance. 2nd European ed., McGraw-Hill 2013.

• Ross, St. A.; Westerfield, R. W.; Jaffe, J. F.: Corporate Finance. 7th ed., McGraw-Hill 2005.

• Brealey, R. A.; Myers, S. C.: Principles of Corporate Finance. 6th ed., McGraw-Hill 2000.

• Copeland, T. E.; Weston, J. F.; Shastri, K.: Financial Theory and Corporate Policy. 4th ed., Addison Wesley 2005.

• Lecture using a combination of media (blackboard work, projector)

• Exercises on the computer

• Case study discussions

• Group work

English  

Written examination (100%)

6

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