Finanzas Corporativas II (BBA30013)

General information

Type:	OB	Curs:	4	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Sec: A	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad	CAT

Group	Teacher	Department	Language
Sec: B	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad	ESP

Group	Teacher	Department	Language
Sec: C	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad	CAT

Core and compulsory courses: Accounting and Financial Analysis, Introduction to Stock Exchanges, Micro and Macro Economics, and Corporate Finance I.

Analysis and appraisal tools used in Financial Mathematics and Analysis courses and their application to corporate finance evaluation models: IRR, DCF.

Lectures: 25%
Teamwork: 10%
Assignments: 10%
Independent study: 55%

This course aims to present Finance as a function of a company's global strategy. It develops a more qualitative dimension to the study of finance. Corporate Finance I familiarised students with the basic finance models used to create value, and this course will focus on the opportunities and threats that a company faces as well as the role finance plays in these cases. We will take a close look at the short-term factors that can hamper value creation and the interaction between the company, the business world and stock exchanges and how this affects value creation and survival possibilities.

The objective of the Corporate Finance II course is for students to acquire a global and comprehensive view of finance. For this, we will study the implications business structure and organic and inorganic growth have on a company's finances. We will also analyse the market operations that transform the financial structure and its relation with financial markets.

In the Finance courses completed thus far, the market was assumed to be efficient, with symmetrical data and rational agents. When we introduce distortions, the consequences for prices are not the result of a sterile assessment; we also have to study the implications financial deciions have for the different player. Our analysis of these operations have to incorporate the knowledge acquired in other undergraduate finance courses as well as our prior knowledge of accounting and analytical principles, markets and corporate finance.

6. Strategic thought, systematic thought

1. Knowledge acquisition, comprehension and structuring

3. Taking decisions / making judgments

2. Application of knowledge to achieve results

1. Financial characterisation of economic activities Balance sheets and profit and loss accounts according to the business. Representation of the balance sheet in term of the total net investment and capital used. Analytical foundations: margins and turnover. ROE, operational and financial leverage.

2. Financing growth Sales increase and investment needs. Financial planning. Structuring capital associated to growth.

3. Financial institutions Private equity and venture capital. Hedge funds. Investment funds. LBO.

4. Appraisals Review of appraisals. Discounted cash flow and multiples.

5. M&As M&A financing

6. Capital structure implementation Share buy-back. Pros and cons of debt. Pecking order. What do companies do?

7. Growth capital

8. Going public

9. Debt vs. shares

10. The financial system Shadow banking. Regulated arbitration. Tax avoidance.

Classroom sessions will consist of two parts: one dedicated to lectures and theory and the other to analyse practical case studies and business scenarios.
Required readings
Teamwork to analyse economic reality
Voluntary tutorials for students who need help to complete assignments and use the different tools

ASSESSMENT BREAKDOWN

Short bibliography:

Allen, Franklin; Myers, Stewart; Brealey, Richard. (2006). Principios de Finanzas Corporativas. 8ª ed. Editorial
McGraw-Hill. ISBN: 8448146212 ISBN-13: 9788448146214

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffey. Finanzas corporativas. 7a ed. McGraw-Hill, 2005. ISBN: 9701046544 ISBN-13: 9789701046548

Berk, J.; De Marzo, P. Corporate Finance. Pearson, 2009. ISBN:12:978-0-321-540096

Group	Teacher	Department
Sec: A	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: B	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: C	Carmen Ansotegui Olcoz	Economía, Finanzas y Contabilidad