VYSOKÁ ŠKOLA FINANČNÍ A SPRÁVNÍ, o.p.s
Methodical notes
1st tutorial of master‘s degree
part-time study programme
Course code: N_CFM2
Course title: CORPORATE FINANCIAL MANAGEMENT II
Theme: Strategy and Tactics of Financing Decisions
Goal: Students should get acquainted with essential topics relating to the structure and
raising of capital.
The theme is divided into the following sections:
1: Capital Structure Decisions
2: Distributions to Shareholders
3: IPOs, Investment Banking and Financial Restructuring
Section 1: Capital Structure Decisions
1. To master the section, please study:
1. Brigham, M.C., Ehrhardt, E.F. Financial Management: Theory and Practice 13th ed.
Mason: South-Western, 2009 (B&E) Chapter 15 (Capital Structure Decisions)
.
2. Pay careful attention mainly to the following structures and items:
1. Summary on pages 630-631
3. Remember the definitions and characteristics of the following key terms:
Optimal capital structure, target capital structure, business risk, financial leverage,
operating leverage.
4. Having studied the required literature you should:
 Understand the above mentioned key issues well
 Be able to explain the above mentioned key terms and structures satisfactorily
 Know how to answer the following questions:
1. Questions 15-1,2,3,4,5,6,7,8 (p. 632)
2. Self-Tests in Chapt. 15
5. Provided any part of the required literature contents or task definitions (issues, terms,
questions) is not clear to you, try to formulate these in writing so that it can be consulted with
your lecturer.
STUDY GUIDE TO PART-TIME STUDY
1
VYSOKÁ ŠKOLA FINANČNÍ A SPRÁVNÍ, o.p.s
Methodical notes
1st tutorial of master‘s degree
part-time study programme
Course code: N_CFM2
Course title: CORPORATE FINANCIAL MANAGEMENT II
Theme: Strategy and Tactics of Financing Decisions
Section 2: Distributions to Shareholders
1. To master the section, please study:
1. B&E Chapter 14 (Dividends and Repurchases)
2. Pay careful attention mainly to the following structures and items:
1. Summary on page 591
Keywords: distribution policy, signaling and clientele effects, residual distribution model.
3. Remember the definitions and characteristics of the following key terms:
Distribution policy, signaling and clientele effects, residual distribution model.
4. Having studied the required literature you should:
 Understand the above mentioned key issues well
 Be able to explain the above mentioned key terms and structures satisfactorily
 Know how to answer the following questions:
1. Questions 14-1,2,3 (p. 592)
2. Self-Test Problem ST-1 (p. 593)
3. Self-Tests in Chapt. 14
5. Provided any part of the required literature contents or task definitions (issues, terms,
questions) is not clear to you, try to formulate these in writing so that it can be consulted with
your lecturer.
STUDY GUIDE TO PART-TIME STUDY
2
VYSOKÁ ŠKOLA FINANČNÍ A SPRÁVNÍ, o.p.s
Methodical notes
1st tutorial of master‘s degree
part-time study programme
Course code: N_CFM2
Course title: CORPORATE FINANCIAL MANAGEMENT II
Theme: Strategy and Tactics of Financing Decisions
Section 3: IPOs, Investment Banking and Financial Restructuring
1. To master the section, please study:
1. B&E Chapter 20 (IPOs, Investment Banking and Financial Restructuring)
2. Pay careful attention mainly to the following structures and items:
1. Summary on pages 817-818 (excl. U.S. Regulatory matters)
3. Remember the definitions and characteristics of the following key terms:
Private placement, IPO, underwriting, best-efforts placement, private equity, asset
securitization.
4. Having studied the required literature you should:
 Understand the above mentioned key issues well
 Be able to explain the above mentioned key terms and structures satisfactorily
 Know how to answer the following questions:
1. Questions 20-1,5 (pp. 818-819)
2. Self-Test Problem ST-1 (p. 819)
3. Self-Tests in Chapt. 20
5. Provided any part of the required literature contents or task definitions (issues, terms,
questions) is not clear to you, try to formulate these in writing so that it can be consulted with
your lecturer.
Student‘s name:
(title, forename, surname)
Study field:
Study group number:
Date:
STUDY GUIDE TO PART-TIME STUDY
3