TecnoCampus Foundation
eCampus
University Business
eCampus

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General information

Subject type: Mandatory

Coordinator: Enric Camón Luis

Trimester: Second term

Credits: 6

Teaching staff: 

Núria Masferrer Llabinés
Xavier Soldevila Moliner 

Teaching languages

  • Catalan

Skills

Basic skills

  • B2_That students know how to apply their knowledge to their job or vocation in a professional way and have the skills that need to be demonstrated through the elaboration and defense of arguments and the resolution of problems within their area of ​​study

  • B3_Students have the ability to gather and interpret relevant data (usually within their area of ​​study), to make judgments that include reflection on relevant social, scientific or ethical issues

     

Specific skills

  • E3_Analyze and evaluate the information in the financial statements, applying legal criteria or defined by the company, evaluate the economic performance and prepare financial reports that are used for decision making

     

General competencies

  • G2_Be able to innovate by developing an open attitude to change and be willing to re-evaluate old mental models that limit thinking

Transversal competences

  • T3_Show entrepreneurial leadership and leadership skills that build personal confidence and reduce fear of risk

     

  • T5_Develop tasks applying, with flexibility and creativity, the knowledge acquired and adapting it to new contexts and situations

     

Description

Financial Management is a subject where the fundamentals learned in the subjects of short-term investment and financing and quantitative techniques for financial management are consolidated and the study of long-term financial management begins where the ability to deal with and solve company financing problems.

Contents

TOPIC 1: FINANCIAL SYSTEM

The financial system. Markets, Assets and Financial Institutions. The financial function of the company: The financial objective. Principles of financial function. The investment-financing binomial. The role of the CFO.

 

SUBJECT 2: STATIC AND DYNAMIC METHODS OF SELECTION OF INVESTMENTS

Simple interest, compound interest. Update, capitalization. Annualization of returns; Pay-back, return on cash flows, average annual return on cash flows per euro invested. Discounted Pay-Back, Net Present Value (NPV), IRR (Internal Rate of Return), Profitability Index, Weighted Profitability Index.

 

SUBJECT 3: ANALYSIS AND EVALUATION OF INVESTMENT PROJECTS

What do we mean by investment; Which cash flow to use: the Free Cash-Flow (FCF), the Free Cash-Flow after taxes or the Cash-Flow of the shareholder; Stages for the analysis of an investment project: example of a project; Income statement and pension balance. Analysis; “Cash flows” arising from investment in net assets (NOF and Fixed Assets); Flows produced by the benefit of the project. Perpetuity; Risks or uncertainties in investment projects; Profitability we ask of the investment. Weighted Average Cost of Capital (WACC); Other criteria for deciding the investment; Project financing; Inflation treatment

 

TOPIC 4: STRATEGIC DECISIONS ON LONG-TERM FINANCING OF THE COMPANY

Debt and capital decisions: capital cost management; Debt cost; Debt effects: leverage; How much debt we should have; When to apply for debt; Types of debt to apply for; What is the bank looking at; Cost of equity; Criteria for deciding between debt or equity: assessment of the optimal capital structure; Banking products to get financing; The company's dividend policy. Self-financing, capital increases and long-term sources of financing (loans, leasing)

 

SUBJECT 5: VALUATION OF COMPANIES

Valuation of companies: generalities and utilities; Valuation method for comparables; Flow discount method. Capital Asset Pricing Model (CAPM); Model Gordon- Shapiro.

Evaluation system

Evaluation system:

Final Exam 50%
Continuous assessment group activities  50%
  • There will be one exam final which will account for 50% of the final grade, with a minimum grade of 4,5 out of 10 to be able to average with the continuous assessment.
  • Active participation in class, the attitude shown, volunteer work can subsidize the final grade by up to 0,5 points.

RECOVERY EXAMINATION: In the event that a student has failed, they can go to recovery, taking the entire final exam again. The grade corresponding to the continuous assessment (50%) is not recoverable and for the final exam the minimum grade of 4,5 out of 10 will be maintained when calculating the final grade.

A student who has not applied for the first call CANNOT apply for recovery.

REFERENCES

Basic

MARTÍNEZ ABASCAL, Eduardo (2017): Finances for managers, Mc Graw Hill, IESE Business School, 2nd edition, Madrid.

GERMAN, Fine; ALVAREZ, Carolina; ARASA, Maria Josep; CASANOVAS, Montserrat; GARRIGA, Marc; LOPEZ, Josep Maria; MAÑOSA, Agustí; MONLLAU, Teresa; RIPOLL, Enric; SANTANDREU, Pol; TORRES, Josep (2011): Practical guide of valuation of companies, Profit (ACCID), Barcelona.

Complementary

FAUS, Josep (2001): Policies and financial decisions for value management in companies, IESE - University of Navarra, Navarra.

FAUS, J., & TÀPIES, J. (2003). Operational finance: the financial management of day-to-day operations (act.). Barcelona: IESE: University of Navarra. 

SUÁREZ SUAREZ, Andrés (1998): Optimal decisions of investment and financing of the company, 18ª edition, Pyramid, Madrid.

BREALEY, Richard A.; MYERS, Stewart, C. ALLEN, Marcus (2022): Fundamentals of corporate finance, 23rd edition, McGraw-Hill, Madrid.