Financial Management

Ing. Zuzana Čierna, PhD.

Department of Finance
037/641 41 40
zuzana.cierna@uniag.sk
1
 Course objectives
• An overview of financial management
• Financial statements, Cash Flow and Taxes
• Financial analysis
• Financial Planning and Forecasting
• Financial markets and institutions of the Financial market
• Risk and Rates of Return
• Time value of Money
• Securities valuation
• The cost of capital
• Capital structure and Leverage
• Working Capital Management
• Exchange rates and Exchange Rate risk
2
 Texts and Materials
• Fundamentals of Financial Management
• Course web page materials
• Seminary works
• www.nbs.sk
• www.finance.gov.sk

3
 Requirements and classification

• Evaluation – total 100 points:

– Activity and attendance – max. 5 points,
– Test 1 – max. 20 points,
– Presentation of a project – max. 15 points,
– Exam – max. 60 points.

• At the end of semester minimum points obtained -25

• The minimum requirement (totally) is to obtain at least
64 points in accordance with presented evaluation.

4
 Evaluative scale

Level of knowledge Classification Grade

• Excellent 93-100 % A Excellent 1

• Above standard 86-92 % B Very good 1,5
• Average 79-85 % C Good 2
• Acceptable 72-78 % D Satisfactory 2,5
• Minimal criteria 64-71 % E Sufficient 3
• Less than minimal criteria  63 % FX Fail 4

5
 Presentations of projects
• Structure (.doc):
– Title page – topic, authors, faculty
– Content
– Introduction
– Body – 10 pages, citations directly in the text
– Conclusion
– Bibliography – books, articles and interne
• Presentation (.ppt):
- 15 Minutes
6
 Topics
1. Financial statements, structure and basic relations
2. Financial analysis, procedure, basic ratios
3. Financial planning, types of plans in a company
4. Risk valuation and risk quantification
5. Financial resources acquirement, own capital and
liabilities, external and internal funds, cost of
capital
6. Modern portfolio theory, risk diversification
7. Multinational financial management and exchange
rate risk
7
 Financial management
• Financial Management entails planning for
the future for a person or a business
enterprise to ensure a positive cash flow. It
includes the administration and maintenance
of financial assets.
• Besides, financial management covers the
process of identifying and managing risk.

8
Scope of Financial Management
• Money and capital markets - which deals with
securities markets and financial institutions;
• Investments - which focuses on the decisions
made by both individual and institutional
investors as they choose securities for their
investment portfolios;
• Financial management - or ‘business
finance’, which involves decisions within
firms.
9
 THE FINANCIAL STAFF’S
RESPONSIBILITIES

• Forecasting and planning.

• Major investment and financing decisions.
• Coordination and control.
• Dealing with the financial markets.
• Risk management.

10
 An agency problem
• is a potential conflict of interests that can
arise between a principal and an agent. Two
important agency relationships are
• (1) those between the owners of the firm and its
management and
• (2) those between the managers, acting for
stockholders, and the debtholders.

11
12
13
Direct and Indirect financing

14
Than you for your attention!

15