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Finanzas Corporativas I (BBA30005)

General information

Type:

OB

Curs:

3

Period:

S semester

ECTS Credits:

4 ECTS

Teaching Staff:

Group Teacher Department Language
Sec: A Lydia Ros Frizón Economía, Finanzas y Contabilidad CAT
Sec: A Jesús Palau Montañana Economía, Finanzas y Contabilidad CAT

Group Teacher Department Language
Sec: B Jesús Palau Montañana Economía, Finanzas y Contabilidad ESP
Sec: B Lydia Ros Frizón Economía, Finanzas y Contabilidad ESP

Group Teacher Department Language
Sec: C Lydia Ros Frizón Economía, Finanzas y Contabilidad CAT

Prerequisites

Management development courses and compulsory courses in Accounting and Financial Analysis, Fundamentals of Financial Markets, Microeconomics and Macroeconomics.

Workload distribution

Workload distribution:
Lectures: 23 hours
Participatory sessions: 20 hours
Independent study: 57 hours
Tutorials/feedback per section: 10 hours

COURSE CONTRIBUTION TO PROGRAM

It is essential for Bachelor in Business Administration students to be able to identify threats to and opportunities for value creation in companies; know the different value measurement models and understand their advantages and limitations; and be able to apply them when selecting investments and resources for a company, while also identifying the contribution made by Financial Management to value creation for the shareholder.

Course Learning Objectives

Upon completing this course students should be able to:
- Recognise the determining factors for the creation of value for shareholders
- Model and structure knowledge so as to be able to apply it to the selection process for investments and company appraisals.

Competences

3. Taking decisions / making judgments
6. Strategic thought, systematic thought
1. Knowledge acquisition, comprehension and structuring
2. Application of knowledge to achieve results

Relation between Activities and Competences

3 6 1 2
Mid-term exam        
Class participation and turned-in case studies        
Final exam        

CONTENT

1. Long-term financial planning

Basic concepts
Preparing balance sheets and provisional trading accounts
Business plan: Analysis and discussion

2. Investment selection analysis and projects.

Net Present Value, Internal Rate of Return (NPV and IRR) and Payback: Underlying assumptions.
Previous concepts: Cash Flow. Free Financial Cash Flow and Free Cash Flow for shareholders.
Estimating Cash Flow and Differential Cash Flow
WACC: Weighted Average Cost of Capital, a first approach
Project selection: VAN vs TIR

3. Cost of Capital

Capital Market Line diversification
Cost of shareholder equity
The Capital Asset Pricing Model (CAPM) as an instrument to determine the cost of shareholder equity.
The cost of shareholders equity and leverage.
The cost of debt.
The WACC: Weighted Average Cost of Capital.
Introduction to optimal financial structure.


4. Company appraisal

Importance of value and price
Valuation methods and systems: Discounted Cash-Flow valuation model; Dividend valuation model; and Multiple valuation model.
How the various valuation methods interrelate.

Relation between Activities and Contents

1 2 3 4
Mid-term exam        
Class participation and turned-in case studies        
Final exam        

Methodology


ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Mid-term exam 28
Class participation and turned-in case studies 12
Final exam 60

Assessment criteria

First sitting:

Ongoing assessment: Tests and/or mid-term exams and class participation account for 40% of the final mark. The content of the mid-term exams may also re-appear on the final exam. Class participation and case study texts turned in prior to class represent 12%. Tests results represent 28%.

Final exam: this accounts for 60% of the final grade.
However, students must achieve at least a 5 or over on the final exam to pass the course in the first sitting.

Final exam re-sitting:

Ongoing assessment grades will not be taken into account when re-sitting the final. Students must earn a minimum of 5 out of 10 on the re-sit final in order to pass this course.

Bibliography

Short bibliography:
Allen, Franklin; Myers, Stewart; Brealey, Richard (2010). Principios de finanzas corporativas. 9a ed. McGraw-Hill. ISBN 9789701072837

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey (2012). Finanzas corporativas. 9a ed. McGraw-Hill. ISBN: 86071507419

Timetable and sections

Group Teacher Department
Sec: A Lydia Ros Frizón Economía, Finanzas y Contabilidad
Sec: A Jesús Palau Montañana Economía, Finanzas y Contabilidad

Horari Sec: A

From 2015/9/15 to 2015/9/29:
Each Tuesday from 8:00 to 9:00. (Except: 2015/9/15 and 2015/9/29)
Each Tuesday from 9:00 to 11:00. (Except: 2015/9/15 and 2015/9/29)
Each Tuesday from 8:00 to 11:00. (Except: 2015/9/22)

From 2015/10/6 to 2015/10/22:
Each Tuesday from 8:00 to 9:00. (Except: 2015/10/13)
Each Tuesday from 9:00 to 11:00. (Except: 2015/10/13)
Each Thursday from 8:00 to 10:00.
Each Tuesday from 8:00 to 11:00. (Except: 2015/10/6 and 2015/10/20)

From 2015/10/27 to 2015/11/12:
Each Thursday from 8:00 to 10:00. (Except: 2015/10/29 and 2015/11/5)
Each Tuesday from 10:00 to 14:00. (Except: 2015/11/3 and 2015/11/10)
Each Tuesday from 8:00 to 11:00. (Except: 2015/10/27)

From 2015/11/17 to 2015/12/1:
Each Tuesday from 8:00 to 9:00. (Except: 2015/12/1)
Each Tuesday from 9:00 to 11:00. (Except: 2015/12/1)
Each Thursday from 8:00 to 10:00. (Except: 2015/11/19)
Each Tuesday from 8:00 to 11:00. (Except: 2015/11/17 and 2015/11/24)

Group Teacher Department
Sec: B Jesús Palau Montañana Economía, Finanzas y Contabilidad
Sec: B Lydia Ros Frizón Economía, Finanzas y Contabilidad

Horari Sec: B

From 2015/9/15 to 2015/10/22:
Each Thursday from 17:00 to 20:00. (Except: 2015/9/17, 2015/9/24 and 2015/10/1)
Each Tuesday from 14:00 to 17:00.

From 2015/11/3 to 2015/12/1:
Each Thursday from 17:00 to 20:00. (Except: 2015/11/5 and 2015/11/19)
Each Tuesday from 14:00 to 17:00.

Group Teacher Department
Sec: C Lydia Ros Frizón Economía, Finanzas y Contabilidad

Horari Sec: C

From 2015/9/22 to 2015/10/22:
Each Thursday from 8:00 to 10:00. (Except: 2015/9/24 and 2015/10/1)
Each Tuesday from 8:00 to 11:00. (Except: 2015/9/29, 2015/10/13 and 2015/10/20)

From 2015/11/12 to 2015/11/26:
Each Thursday from 8:00 to 10:00. (Except: 2015/11/19)
Each Tuesday from 8:00 to 11:00.