I. SUBJECT DESCRIPTION
II. SUBJECT REQUIREMENTS
III. COURSE CURRICULUM
SUBJECT DATA
OBJECTIVES AND LEARNING OUTCOMES
TESTING AND ASSESSMENT OF LEARNING PERFORMANCE
THEMATIC UNITS AND FURTHER DETAILS
Subject name
CORPORATE
ID (subject code)
BMEGT35MN01
Type of subject
Contact lessons
Course types and lessons
Type
Lessons
Lecture
2
Practice
2
Laboratory
0
Type of assessment
exam grade
Number of credits
5
Subject Coordinator
Name
Dr. Somogyi Róbert
Position
assistant professor
Contact details
somogyi.robert@gtk.bme.hu
Educational organisational unit for the subject
Department of Finance
Subject website
Language of the subject
magyar - HU
Curricular role of the subject, recommended number of terms

Programme: Master’s programme in Management and Leadership from 2019/20/Term 1 (Autumn term start)

Subject Role: Compulsory

Recommended semester: 2

Programme: Master’s programme in Management and Leadership from 2020/21/Term 2 (Spring term start)

Subject Role: Compulsory

Recommended semester: 1

Programme: Engineering Manager Msc from 2017/18//term 2 (Spring term start)

Subject Role: Compulsory

Recommended semester: 1

Programme: Engineering Manager Msc from 2018/19/Term 1 (Autumn term start)

Subject Role: Compulsory

Recommended semester: 2

Programme: MSc in Management and Leadership

Subject Role: Compulsory

Recommended semester: 2

Programme: Engineering Manager Msc from 2016/17/Term 1 (Autumn term start)

Subject Role: Compulsory

Recommended semester: 2

Programme: Engineering Manager Msc from 2016/17/Term 1 (Spring term start)

Subject Role: Compulsory

Recommended semester: 1

Direct prerequisites
Strong
None
Weak
None
Parallel
None
Exclusion
None
Validity of the Subject Description
Approved by the Faculty Board of Economic and Social Science (30.01.2019.) with the 6th decision on the 580063/4/2019 registration number that is valid from 30.01.2019.

Objectives

The subject is designed to give the students a broad overview of financial goals and assets of corporations (PLCs), to get them acquainted with project evaluation techniques and methods for supporting decision making. Students will examine financing opportunities and decision methodes for corporations, investors' considerations, the relation between yield and risk. Developing this course syllabus, we have aimed to cover module V (Corporate finance) of the international CFA (Chartered Financial Analyst) exam. Teaching focuses on enabling students to adapt their theoretical knowledge in practice.

Academic results

Knowledge
  1. financial goals and assets of corporations,
  2. evaluation methods for corporate investment and financing decisions,
  3. processes providing basis for the evaluation of assets on financial markets,
  4. evaluation methods of corporate projects,
  5. financial contexts of decision-making processes.
Skills
  1. plan and organize independent learning,
  2. comprehend and use the professional literature of the topic,
  3. recognize the contexts behind financial decisions,
  4. do calculations that support decision-making.
Attitude
  1. are open to learn about and adapt innovations in finance,
  2. collaborate with their instructors and peers during the learning process,
  3. gain knowledge and information,
  4. make use of ICT tools.
Independence and responsibility
  1. are open to accept reliable critical remarks
  2. collaborate with other students in performing assignments during the learning process
  3. are able to make independent decisions
  4. are capable of making informed jusgements in the financial decision-making processs
  5. can weigh the significance of their responsibilities and foresee the consequences of their decisions

Teaching methodology

Lectures, verbal and written communication, use of ICT tools and techniques.

Materials supporting learning

  • Az előadások prezentációinak anyaga, ami a félév során folyamatosan fog feltöltésre kerülni.
  • Bethlendi András – Molnár László – Somogyi Róbert: Üzleti gazdaságtan. BME GTK Pénzügyek tanszék, oktatási segédanyag.
  • Bodie - Kane - Marcus: Investments (10th edition), McGraw-Hill, 2014.
  • Brealey, R. - Myers, C.S. - Allen, F.: Principles of Corporate Finance, McGraw-Hill, 2008.
  • Lecture slides which will be uploaded continously during the semester.
  • Bethlendi András – Molnár László – Somogyi Róbert: Business Economics. BME GTK Finance Department teaching material.
  • Bodie - Kane - Marcus: Investments (10th edition), McGraw-Hill, 2014.
  • Brealey, R. - Myers, C.S. - Allen, F.: Principles of Corporate Finance, McGraw-Hill, 2008.

General Rules

Assessment of the learning outcomes described under 2.2. is based on a written exam.

Performance assessment methods

- The complex written assessment of knowledge and skill competencies of the subject is based on written exam at the end of the semester. The test focuses on practical adaptation of the knowledge students gained in the learning process, not excluding testing theoretical knowledge. The parts of the learning material for the tests are selected by the lecturer. Working time for test writing is 60 minutes, the maximal number of points is 100.

Percentage of performance assessments, conducted during the study period, within the rating

  • Additional points for active participation in lectures: az elért pontokhoz hozzáadódik + 10 points, if pass or above, added to the points achieved

Percentage of exam elements within the rating

  • Written exam at the end of the semester: 100%

Conditions for obtaining a signature, validity of the signature

Az aláírás megszerzésének a TVSZ-ben rögzített általános szabályokon túl nincs feltétele. A megszerzett aláírás a TVSZ szerinti időtartamig érvényes.

Issuing grades

%
Excellent 95%-110-100
Very good 87–94
Good 75–86
Satisfactory 63–74
Pass 50–62
Fail 0-49

Retake and late completion

Correction and replacement is according to TVSZ.

Coursework required for the completion of the subject

Nature of work Number of sessions per term
Participation in contact lessons 24×4= 96
Written learning material 24
Preparing for the exam 30
total 150

Approval and validity of subject requirements

Consulted with the Faculty Student Representative Committee, approved by dr. Lógó Emma, Vice Dean for Education. Valid from February 1, 2021

Topics covered during the term

The subject includes the topics detailed below to ensure that learning outcomes listed under 2.2. can be achieved. Timing of the topics may be affected by calendar or other circumstances in each semester.

Lecture topics
1. Financial markets and the corporation, corporate governance
2. Capital investment decisions I: Present and future value calculations
3. Capital investment decisions II: Investment decision criteria
4. Capital investment decisions III: Sensitivity, elasticity, breakeven and scenario analysis
5. Capital investment decisions IV: Real options and decision trees
6. Business and financial risk I: operating and financial leverage
7. Business and financial risk II: breakeven points
8. Dividend policy
9. Long-term financial policy: cost of capital; capital structure theories, the effects of financial leverage
10. Short-term financial policy I: cash planning; net working capital; trade finance; managing short-term assets and liabilities
11. Short-term financial policy II: inventory management; managing short-term assets and liabilities
12. Mergers and acquisitions and corporate restructuring

Additional lecturers

Name Position Contact details

Approval and validity of subject requirements

Part I-III of the Subject Form is to be approved by the Head of Department of Finance named under 1.8.