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Financial management

Course abstract

The study course provides knowledge on classical and modern financial management theories and approaches, principles, methods and techniques of capital structure formation, cost of capital calculation and company valuation under the circumstances of market imperfection and continuous change. This course develops the skills to make the strategic financial management decisions related with valuation of company, investment projects, mergers and acquisitions.

Learning outcomes and their assessment

Knowledge.
• Demonstrate knowledge of contemporary theory and techniques of economics and business administration - test, exam, individual work
• Utilize scientific research in business administration - test, exam, individual work
Skills.
• Evaluate competitive situation in their field of operation to design management and marketing strategies for improvement of the competitive position of their organisation in global marketplace – discussion, , individual work
• Demonstrate effective communication and networking skills in modern society - discussion
• Organize and participate in joint decision making process - discussion, individual work.
• Demonstrate ethical and socially responsible leadership and management skills in the context of global marketplace- discussion
• Demonstrate understanding of the ethical consequences of their business decisions - discussion.
• Demonstrate understanding of global issues in context of agricultural business. concerning social. economic. political and environmental problems - discussion, individual work.
Competencies.
• To able to apply skills and knowledge necessary for strategic financial management decisions in all forms of agri-food business organizations in order to maximise the shareholder’s value - test, exam, individual work.

Course Content(Calendar)

1. Strategic financial management decisions (2 hours).
2. Methods of determination of capital cost (6 hours).
3. Capital structure policy (3 hours)
4. Capital structure formation (3 hours)
5. Dividend theories and models (4 hours)
6. Long term sources of finance (4 hours)
7. Company and investment projects valuation (4 hours).
8. Financial management of mergers and acquisitions (4 hours).

Requirements for awarding credit points

Test
Individual work
Exam

Description of the organization and tasks of students’ independent work

Individual work is concerned with the strategic financial management issues in the chosen enterprise. Desirable in the logistic sector. The example of the content is following: 1. SWOT and other suitable analysis in an enterprise. 2. Planning of enterprise activity and forecasting of financial results. 3. Investment appraisal and financial decisions.

Criteria for Evaluating Learning Outcomes

Test – 10%
Individual work - 40%
Exam – 50%

Compulsory reading

1. DAMODARAN, A. 2012. Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. 3rd edition. New Jersey: John Wiley & Sons.
2. GLEN, A. 2013. Corporate Financial Management. 3rd edition Harlow: Pearson.

Further reading

1. DAMODARAN, A. 2010. The Dark Side of Valuation. Valuing Young, Distressed, and Complex Business. 2nd edition. Upper Saddle River, New Jersey.

Periodicals and other sources

1. Managerial Finance. Published by Emerald Group Publishing Limited. Online ISSN 0307-4358.
2. The Review of Financial Studies. Published by Society of Financial Studies. Online ISSN 1465-7368, Print ISSN 0893-9454.
3. Journal of Business Research. Published by Elsevier Publishing Campus. Online ISSN 0149-2693.