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Finanzas Corporativas (19BBA30005)

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

Group Teacher Department Language
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: 22 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

6. Strategic thought, systematic thought
1. Knowledge acquisition, comprehension and structuring

Relation between Activities and Competences

6 1
Final exam    
Ongoing assessment    

CONTENT

1. Long-term financial planning

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

2. Investment selection and project analysis

Net Present Value, Internal Rate of Return (NPV and IRR and payback): Underlying assumptions.
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, an introduction
Project selection: NPV vs IRR

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.
Methodology and valuation methods and systems: Discounted cash-flow valuation model; dividend valuation model; mutliples valuation approach.
How the various valuation methods interrelate.

Relation between Activities and Contents

1 2 3 4
Final exam        
Ongoing assessment        

Methodology


ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Final exam 75
Ongoing assessment 25

Assessment criteria

First sitting:

Ongoing assessment: this component represents 30% of students' final marks for the subject.

Final exam: this accounts for 70% of the final grade. However, students must achieve at least a 5 or over (out of 10) on the final exam to pass the course in the first sitting.

Final exam re-sitting:
Ongoing assessment marks will only be taken into account for the first 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:
Richard Brealey, Stewart Myers, Franklin Allen
Principles of Corporate Finance
Publisher: McGraw-Hill Education; 12th edition (January 5, 2016)
Language: English
ISBN-13: 978-1259144387

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey; Jordan, Bradford
Corporate Finance
Language: English
Publisher: McGraw-Hill Education; 11th edition (2016)
ISBN-13: 978-0077861759

Richard A. Brealey y Myers Stewart C.
Principios de Finanzas Corporativas (2015)
Publisher: McGraw-Hill Education; 11 edition (2015)
Language: Spanish
ISBN: 9786071513120

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey
Finanzas corporativas.
Language: Español
Publisher: McGraw-Hill Education; 11a ed. (2018)
ISBN: 9781456260873

Timetable and sections

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

Timetable Sec: A

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

Timetable Sec: B

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

Timetable Sec: C