Corporate Finance (2225.YR.003962.2)

General information

Type:	OBL	Curs:	3	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 3	Lydia Ros Frizón	Economía, Finanzas y Contabilidad	CAT, ESP

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

Workload distribution:
Conceptual sessions 2 Sections of around 30 students 32,5 hours
Mentoring sessions 3-4 Subsections of 15-20 students 10,0 hours
Independent study: 76,0 hours
Tutorials/feedback per section: 10,0 hours

It is essential for 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.

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 investment selection processes and company appraisals.

1. Long-term financial planning Financial Balance Sheet & Financial Analysis Balance sheet reorganization for valuation Financial Planning Case 1.0 y 1.1

2. Investment selection and project analysis Free Cash Flow to the firm (FCFF) Capital Budgeting methods: Payback Net Present Value (NPV) Internal Rate of Return (IRR) Advantages and disadvantages of the methods Modified Internal Rate of Return (MIRR) Free Cash Flow to Equity (FCFE) Cases 2.0, 2.1 y 2.2

3. Cost of capital Weighted Average Cost of Capital (WACC) Beta Asset & Beta Equity CAPM & Cost of Equity Cost of Debt Optimal Financial Structure Case 3.1

4. Company Valuation Value versus Price Valuation Methods: Discounted Cash Flow valuation Enterprise Value & Equity Value Case 4.1

In this academic year, the section will be divided into two Subsections.
Each of these Subsections will attend lectures (on-line or in campus) jointly.
For the mentoring (Homework) sessions,
the section will be divided into three or four groups of practices of no more than
20 students. The objective is that, as the groups are smaller, the disadvantage of
not being present can be compensated with a more personalized attention to the
student.
For the on-line lectures, each student is associated with the same subsection as
in campus, and this Subsection will be attended by the same professor.
Similarly, each student belongs to a subgroup of mentoring, attended by
his/her corresponding mentoring teacher.
For the online connection, as it is a recurring meeting, you can directly join the
rest of the sessions with your teacher using the link at the Moodle page. It is
necessary to use the Esade email to do this, as it facilitates the management of
the entire course.
All sessions will be in campus o, if necessary, online, and are scheduled starting in September. In addition to
the lectures and practical sessions, there will be mentoring sessions, in which
students will work in groups of approximately 5 participants guided by a tutor.
On the Moodle's website there are links to:
Zoom for the online classes depending on the group to which the student
belongs and which day the course takes place,
To facilitate the learning process, new materials have been added to the subject's
website, which will be continuously adapted according to needs:
Short subtitled videos with basic concepts
Slides adapted to facilitate the monitoring of these videos
Simple examples and solution templates that help the student's
autonomous work
Throughout the course the solutions to the exercises and cases carried out will
be uploaded.
All regular sessions will last two hours and a half. In lecture sessions, both online or face to-face,
we will focus on the content of the videos that the student should have
previously seen on the general content website.


Adapting to actual situation requires more preparation and responsibility on everyone's
part. For the team of teachers, prepare additional materials that facilitate
students' learning. For the students, the previous preparation of the same that
allows obtaining greater performance of the on-line face-to-face sessions.
We do not intend to increase your workload but to get more out of it.

*The course methodology will be adapted according to capacity limits.

ASSESSMENT BREAKDOWN

Short bibliography:
Richard Brealey, Stewart Myers, Franklin Allen
Principles of Corporate Finance
Publisher: McGraw-Hill Education; 13th edition (2020)
Language: English
ISBN 13: 978 1260013900

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey; Jordan, Bradford
Corporate Finance
Language: English
Publisher: McGraw-Hill Education; 12th edition (2019)
ISBN 13: 978 1259918940

Richard A. Brealey y Myers Stewart C.
Principios de Finanzas Corporativas (2015)
Publisher: McGraw-Hill Education; 13th edition (2020)
Language: Spanish
ISBN 13 978 1456277185

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey
Finanzas corporativas.
Language: Spanish
Publisher: McGraw-Hill Education; 12th ed. (2018)
ISBN 13: 978 1456277789

Group	Teacher	Department
Year 3	Lydia Ros Frizón	Economía, Finanzas y Contabilidad