The change of the value of a firm as a result of the economic recession

The question of business cycles is one of the most interesting topics of the economic policy. The period of economic recession influences most of the subjects in the economy. One of these subjects is a firm. In this thesis I discuss the question how economic depression impacts the value of a firm and how firms react to the recession, what are the consequences of their reactions and the results of these consequences at the macroeconomic level. To demonstrate the impact of the crisis I have evaluated the firm ACTIVA with Discounted Cash Flow Entity method in two different time frames, first evaluation was done before the crisis occurred and the second was done during the crisis. I conclude that the crisis causes a slowdown of the growth of the relevant market and therefore also of the revenues of the firm, it causes a fall in the economic results and not least the profit margin. As a result the value of the firm decreases to less than a half of its pre-crisis value. This proves that the view of a firm's value has significantly changed as a result of the crisis. The firm's behaviour has changed as well and whence it follows that the business cycle is a consequence of a changed behaviour of the economic subjects, which operate their behaviour according to the prices