TecnoCampus Foundation
eCampus
University Business
eCampus

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General information

Subject type: Mandatory

Coordinator: Judith Turrión Prats

Trimester: Second term

Credits: 6

Teaching staff: 

Núria Masferrer Llabinés

Teaching languages

  • Catalan

Skills

Basic skills

  • CB2. That students know how to apply their knowledge to their work or vocation in a professional way and possess the skills that are usually demonstrated through the development and defense of arguments and problem solving within their area of study.

  • CB3. That 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

  • CE3. Analyze and evaluate the financial statements, evaluate the economic performance and prepare financial reports.

General competencies

  • CG2. Be able to innovate by developing an open attitude towards change and be willing to re-evaluate old mental models that limit thinking.

Transversal competences

  • CT3. Demonstrate entrepreneurial leadership and management skills that strengthen personal confidence and reduce risk aversion.

  • CT5. Develop tasks applying the acquired knowledge with flexibility and creativity and adapting them 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.