VŠTE:NZ_MEK Managerial economics - Course Information

NZ_MEK Managerial economics

Extent and Intensity

2/2/0. 5 credit(s). Type of Completion: zk (examination).

Teacher(s)

doc. Ing. Simona Hašková, Ph.D. (seminar tutor)

Guaranteed by

doc. Ing. Simona Hašková, Ph.D.
School of Expertness and Valuation – Rector – Institute of Technology and Business in České Budějovice
Supplier department: School of Expertness and Valuation – Rector – Institute of Technology and Business in České Budějovice

Timetable of Seminar Groups

NZ_MEK/P01: Wed 9:40–11:10 D516, S. Hašková
NZ_MEK/S01: Wed 11:25–12:55 D516, S. Hašková

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.

fields of study / plans the course is directly associated with

• Expertness (programme VŠTE, N_ZN) (2)

Course objectives supported by learning outcomes

The aim of the course is to combine selected knowledge of financial accounting, managerial accounting, controlling, financial analysis, logistics and marketing. These findings will be processed by theoretical tools of the scientific approach. These are methods of mathematical, stochastic, statistical, optimization, etc. The output of such a focused subject are fundamental models of assessed economic reality. These outputs provide well-founded and verifiable solutions for managerial decision-making purposes.

Learning outcomes

Upon successful completion of the course, the student:
They draw up short-term financial plans (budgets for sales, production, purchasing, wages and insurance, overheads, etc.), value the company's assets and liabilities and present them in the form of budget financial statements.
They will apply the acquired knowledge and experience in all positions of operational management of the company focused on maximizing profits or minimizing costs.
It solves economic tasks related to successful and financially sound business.
He bases his managerial decisions with a system of consistent calculations.
It assesses the economic efficiency of long-term investment projects on the basis of return criteria, net present value and internal rate of return.
If there are a large number of different and different probable scenarios of possible development, they will compile the relevant decision trees.
They independently solve simple tasks of sequential decision making.
They will get acquainted with the basics of portfolio analysis and understand the essence of investment diversification, explain the principles of the standard CAPM model and understand various forms of market efficiency hypothesis and their implications for financial managers.

Syllabus

• Lectures:
• 1. Financial versus managerial style of thinking and decision making
• 2. Methods of direct and indirect costing, traditional versus managerial approach to costing (Activity Based Costing)
• 3. Principles of short-term and long-term financing theory - time and risk factor; the function of the mechanism for shifting payments over time and the associated changes in their nominal values ​​conditioned by the existence of the financial market
• 4. Optimization of the length of the financial cycle of money circulation and estimation of the capital need for financing the start-up of production
• 5. Optimization of stocks and cash balances - modern approaches
• 6. CVP analysis of homogeneous product and assortment production
• 7. Economic budget as a short-term financial model of a business plan
• 8. Methods of financial analysis of long-term plans. NPV of cash flow and its interpretation, selected special cases of cash flow and their PV, criteria of simple and discounted return, criterion of maximization of NPV, criterion of internal rate of return
• 9. Decision-making on the basis of net present value - NPV in case of two or more periods of the project run; concept of adjusted NPV (adjusted net present value)
• 10. Deciding on the acceptance or rejection of an investment project in the event of the existence of a number of possible uncertain scenarios of future development - analysis of probabilistic scenarios of project development
• 11. Uncertainty and risk in managerial decision-making (sources and quality of risk, risk management, financial risk and its components)
• 12. Financial portfolio analysis (principle of correlation analysis, mixing of two-component portfolio and subsequent generalization into several components, calculation of return and risk of general portfolio, nature of market risk, effective portfolio)
• 13. Capital asset valuation model - CAPM (market portfolio as an optimal and well-diversified portfolio, sensitivity of investment return to market movements as a measure of its market risk, beta coefficient and its measurement, capital market line, risk premium, capital market equilibrium, overvalued and undervalued securities)
• Seminars:
• 1. Financial versus managerial accounting - case study
• 2. Calculation formula; traditional versus managerial calculation procedures - Activity Based Costing
• 3. Solving practical problems in financial mathematics and managerial decision-making in a short period - a case study
• 4. Calculation of phase turnover times and their management by factoring or forfaiting receivables, discounting invoices, using discounts and other suitable techniques
• 5. Inventory economics; stock chart and EOQ derived from it - economic size of the order; EOQ taking into account quantity discounts; inventory management systems; Baumol's model, Miller-Orr's model and probabilistic model of money balance management
• 6. Fixed versus variable costs, concepts of margin, contribution to sales and turning point; solutions with constant and variable assortment structure and construction of profit graph; solving problems about changes in production within a constant production capacity
• 7. Sensitivity analysis and the possibility of subsequent correction of the most sensitive optional parameters of the short-term financial budget
• 8. Mutual comparisons of decision criteria in terms of interpretation, their plausibility and suitability for use on specific examples
• 9. Estimation of values ​​of project cash flow components, alternative cost of capital or cost of project capital as a discount rate in the case of a flat structure of discount rates, simplification of calculations using relationships for perpetuities or tabulated values ​​of annuity factors
• 10. Expected net present value - E [NPV] of the project, its calculation and interpretation; case without embedded decision option (combination probability decision tree); case with embedded decision option - sequential decision task (sequential decision tree
• 11. Formalization and quantification of risk in economics (risk as a danger of unfavorable results, risk consisting in variability of results); linking profitability and risk; unique and market risk, the essence of risk elimination by creating investment portfolios (diversification)
• 12. Application of financial portfolio analysis to a special case of combining a risk-free deposit or loan with a risky investment, optimal portfolio
• 13. Application of the CAPM model on specific examples

Literature

required literature
• HNILICA, J. a J. FOTR, 2009. Aplikovaná analýza rizika ve finančním managementu a investičním rozhodování. 1. vyd. Praha: Grada, 262 s. ISBN 978-80-247-2560-4.
• FIBÍROVÁ J., L. ŠOLJAKOVÁ a J. WAGNER, 2007. Nákladové a manažerské účetnictví. 1. vyd. Praha: ASPI. ISBN 978-80-7357-299-0.
• BREALEY, R. A., S. C. MYERS a F. ALLEN, 2014. Teorie a praxe firemních financí. 2., aktualiz. vyd. Brno: BizBooks. ISBN 978-80-265-0028-5.
• FOTR, J. a L. ŠVECOVÁ, 2016. Manažerské rozhodování. Ekopress. ISBN 80-8786-533-2.
• KISLINGEROVÁ, E., 2010. Manažerské finance. 3., přeprac. a rozš. vyd. Praha: C. H. Beck. ISBN 978-80-7400-194-9.
• LAZAR, J., 2012. Manažerské účetnictví a controlling. Praha: Grada. ISBN 978-80-247-4133-8.

recommended literature
• VOCHOZKA, M., 2011. Metody komplexního hodnocení podniku. Praha: Grada. ISBN 978-80-247-3647-1.
• KALOUDA, F., 2017. Finanční analýza a řízení podniku. 3. rozš. vyd. Plzeň: Vydavatelství a nakladatelství Aleš Čeněk, s.r.o. ISBN 978-80-7380-646-0.
• DRURY, C., 2008. Management and cost accounting. Londýn: London South-Western/Cengage Learning, 773 s. ISBN 978-1-84480-566-2.
• BREALEY, R. A. and S. C. MYERS. Principles of corporate finances. 7th. Boston: Irwin/McGraw-Hill, 2003. ISBN 0-07-115144-3. info

Forms of Teaching

Lecture
Seminar
Tutorial

Teaching Methods

Frontal Teaching
Group Teaching - Cooperation
Brainstorming
Critical Thinking
Individual Work– Individual or Individualized Activity

Student Workload

Activities	Number of Hours of Study Workload
	Daily Study	Combined Study
Průběžný test (in Czech)	1	1
Preparation for the Mid-term Test	18	32
Preparation for Seminars, Exercises, Tutorial	24	30
Preparation for the Final Test	33	49
Závěrečný test (in Czech)	2	2
Attendance on Lectures	26
Attendance on Seminars/Exercises/Tutorial/Excursion	26	16
Total:	130	130

Assessment Methods and Assesment Rate

Exam – written 70 %
Test – mid-term 30 %

Exam conditions

For successful completion of the course it is necessary to achieve at least 70 % of the course and final test together under the conditions specified below. In the course test, students can get up to 30 points, i.e. 30 %. In the final test, students can get up to 70 points, i.e. 70 %. Grading for the course, i.e. points for the final test (70 - 0) + points for the course test (30 - 0): A 100 – 90, B 89.99 – 84, C 83.99 – 77, D 76.99 – 73, E 72.99 – 70, FX 69.99 – 30, F 29.99 – 0.

Students in the full-time form of study are obliged to participate in 70 % of the lessons (except for lectures). If this condition is not fulfilled, the student will automatically get “-” grade.

Language of instruction

Czech

Further comments (probably available only in Czech)

The course is taught annually.

Teacher's information

Participation in classes in all forms is dealt with by a separate VŠTE internal standard (Student Attendance Records at VŠTE). For full-time students, 70% attendance at the seminars is mandatory.

Students with an individual study plan will also take a credit test at the time of the final test for which they register during the exam period. However, students are obliged to contact the teacher immediately after the approval of the individual study plan (ISP). If the student does not do so, their ISP will not be taken into account.

In case of any questions, they can contact the teacher of the seminar group at haskova@mail.vstecb.cz.

Students of the combined form of study will take the interim test at a joint meeting - more detailed information will be provided by the teacher via mass e-mail.

Testing information for full-time students: 1. intermediate test max. number of achievable points 30, 2. final test max. number of achievable points 70 points, 3. points for activity max. 15 points within seminars for answers/solutions questions/tasks)

Test information for students of combined studies: 1. continuous test max. number of achievable points 30 + max. 15 bonus points for solving the bonus question/example. The 2nd final test includes the possibility of obtaining a maximum of 70 points.

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