Corporate Finance - JEM034

• Title: Corporate Finance
• Guaranteed by: Institute of Economic Studies (23-IES)
• Faculty: Faculty of Social Sciences
• Actual: from 2018 to 2020
• Semester: winter
• E-Credits: 6
• Examination process: winter s.:
• Hours per week, examination: winter s.:2/2, Ex [HT]
• Capacity: 97 / 59 (97)
• Min. number of students: unlimited
• 4EU+: no
• Virtual mobility / capacity: no
• State of the course: taught
• Language: English
• Teaching methods: full-time
• Teaching methods: full-time
• Explanation: Studenti, kteří již splnili JEM187, JEM188 či JEM189 musí o zápis na předmět požádat garanta předmětu. // Students, who already completed JEM187, JEM188 or JEM189 need to ask the course guarantor for the enrollment.
• 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: Olga Bychkova, M.A.
• Teacher(s): Shahriyar Aliyev; Olga Bychkova, M.A.; Jaroslav Pavlíček, M.A.; Binyi Zhang
• 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).