380063 - FINANCIAL MANAGEMENT

Subject type: Mandatory

Coordinator: Judith Turrión Prats

Trimester: Second term

Credits: 6

Academic year: 2025

Teaching course: 4

• Catalan

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.

The classroom (physical or virtual) is a safe space, free of sexist, racist, homophobic, transphobic and discriminatory attitudes, either towards students or teachers. We trust that together we can create a safe space where we can make mistakes and learn without having to suffer the prejudices of others.

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:

• There will be one exam final which will account for 60% 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 Continuous assessment group activity and partial exam is considered continuous assessment (40%) and is not recoverable and, for the final exam, the minimum grade of 4,5 out of 10 will be maintained at the time of calculate the final grade.

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

Any form of academic fraud will be sanctioned in accordance with the center's assessment regulations. If signs of fraud are detected, including the improper use of generative artificial intelligence tools, the subject's teaching staff may call the student for an individual interview with the aim of verifying their authorship.

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.

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

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

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

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

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