Corporate Finance - JEM034

• Title: Corporate Finance
• Guaranteed by: Institute of Economic Studies (23-IES)
• Faculty: Faculty of Social Sciences
• Actual: from 2023
• Semester: winter
• E-Credits: 6
• Examination process: winter s.:
• Hours per week, examination: winter s.:2/2, Ex [HT]
• Capacity: 97 / 97 (97)
• Min. number of students: unlimited
• Virtual mobility / capacity: no
• State of the course: not taught
• Language: English
• Teaching methods: full-time
• Teaching methods: full-time
• Note: course can be enrolled in outside the study plan; enabled for web enrollment; priority enrollment if the course is part of the study plan
• Guarantor: doc. PhDr. Adam Geršl, Ph.D.
• Teacher(s): doc. PhDr. Adam Geršl, Ph.D.
• Class: Courses for incoming students
• Interchangeability : JEM187, JEM188, JEM189
• Is incompatible with: JEM187, JEM188, JEM189
• Is interchangeable with: JEM189, JEM187, JEM188

Annotation

Last update: Olga Bychkova, M.A. (20.09.2017)

The course provides students with the principles of corporate finance and their practical applications. It covers deeper insight into valuation of bonds and stocks, decision-making within corporations, theory of capital structure and management, and related topics of
payout and debt policies. In addition, the course covers basics of pricing derivative securities and managing risk.

Literature

Last update: Olga Bychkova, M.A. (20.09.2017)

The main textbook for this course is: Brealey, R. A., Myers, S. C., & Allen, F. (2011) Principles of corporate finance - 10th edition. McGraw-Hill Education.

Requirements to the exam

Last update: Olga Bychkova, M.A. (03.07.2019)

Grading is based on three components:

30% Problem sets (home assignments distributed biweekly, due two weeks later)

30% Midterm exam

40% Final exam

Syllabus

Last update: Olga Bychkova, M.A. (02.10.2022)

Main Topics Covered

1. Review of key finance concepts: present value, valuation of bonds and stocks, investment criteria (chapters 2-5).

2. Making investment decisions and project analysis (chapters 6 and 10).

3. Investments, strategy, and economic rents (chapter 11).

4. Risk, return, and the cost of capital: CAPM and APT (chapters 7-9).

5. Efficient markets, corporate financing and how corporations issue securities (chapters 13-15).

6. Payout and debt policies (Modigliani and Miller propositions) and corporate borrowing (chapters 16-18).

7. Introduction to derivative securities: real options (chapters 20-22).

8. Managing risk: forwards and futures (chapter 26).

Registration requirements

Last update: Ing. Dagmar Schnellerová (20.09.2023)

The JEM034 Corporate Finance course will not be offered in WS 2023/2024.

Students of the master's program specializing in Banking and Corporate Finance, who have this course as a compulsory specialization, can instead choose any other specialization course from the other specializations according to the new Karolinka 2023/2024 (a total of 18 different courses).

If they have already completed such a course as a compulsory elective, it can also be recognized as a specialisation, but then its credits will not be counted towards the required 24 credits for compulsory elective courses and it is necessary to complete another compulsory elective course.

No steps are required on the part of the students to count another specialization course instead of JEM034 Corporate Finance, the recognition will take place directly by the guarantor of the study as part of the control of study obligations before the State Final Examination at the end of the master's program.

In case of questions, contact the master's program guarantor Doc. Adam Geršl.