SUBJECTS

1. better understanding of corporate finance, according to the many, growing and exciting theory and practice;
2. better understanding of the risk and return, cost of capital and value of company or other organization;
3. better understanding of investment analysis, financing decisions and dividend decisions as strategic financial decisions in company;
4. better understanding of financial statements, financial analysis and financial performances of company;
5. identifying key concepts within this financial discipline;
6. the possibility of discussion and consideration of the financial manager role in the company, bank and other business systems;

Demystification of corporate finance, Objective in Corporate Finance; Tools of corporate finance; Strategic financial decisions: financing decisions, investment decisions and dividend decisions, Objectives in decision making; Examining key elements of corporate finance; Analysis of the financial manager role; Objectives of the company; Maintenance of corporate relationships; Value maximisation.

Risk is a major element in both the global macro-economic and the firm level micro-economic model. Evaluation of the concept of risk; Defining Risk; Risk and return; Equity risk and Expected Returns; Risk in Borrowing: Default risk and cost of debt; Bond rating and interest rates; Cost of equity; Analysis how risk can be moderated or modified by regulatory and prudential supervision.

Investment Decision Rules; Working capital management; Cash conversion cycle and the motives for holding cash; Investment appraisal; Importance of inter-temporal choice and the time value of money; Measuring return on investment; Estimating earnings and cash flow for projects; Various investment appraisal techniques, including net present value, the payback method, internal rate of return and the profitability index; Ranking of investment projects; Cost of equity for projects; Managing cash flow and making good investment decisions.

The importance of capital structure - the Modigliani-Miller theorem (MM) on the irrelevance of capital structure, traditional theory and other theories; Financing behaviour; Consideration of the roles of capital raising and management; Financing choice; Problem of short, medium and long term financing; Process of raising capital (financing process); How companies choose their capital structure; Optimal financing mix; Cost of capital; cost of equity; cost of debt; cost of hybrid securities; Weighted average cost of capital (WACC); Taxation effects; Financial distress; Agency costs; Signalling concerns, clientele issues and agency theory; Valuation of bonds; Default risk; Valuation of shares.

Importance of corporate dividend policy; Dividend process; Measures of dividend policy; Theories of dividend: dividend irrelevance school and other schools; Dividend Tax disadvantage; Reasons for paying dividends; Analysing cash return to stockholders; Possible strategies and the dividend controversy.

Understanding financial statements; Indicators for diagnosing the condition and the success of the company; Du Pont system of analysis; Issue of capital structuring and financial strength; Measuring value of liabilities and equity; Financial ratios as measure of company´s performance; Profitability and company value; Liquidity and the issue of capital protection; Company's sustainable growth rate; Restructuring and competitive ability of the company.

Valuation: principles and practice; Importance of company valuation; Purpose of valuation; Discounted Cash Flow Valuation; Free cash flow to the firm; Free cash flow to the equity; Cost approach to the valuation; Relative Valuation.