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2020/2021

Finance

Code: 102180 ECTS Credits: 6
Degree Type Year Semester
2501232 Business and Information Technology OB 2 2
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Albert Sala Cuberta
Email:
Albert.Sala@uab.cat

Use of Languages

Principal working language:
catalan (cat)
Some groups entirely in English:
No
Some groups entirely in Catalan:
Yes
Some groups entirely in Spanish:
No

Teachers

Albert Sala Font

Prerequisites

It is assumed that the students enrolled in this subject have developed the skills worked in previous semesters and courses.

Objectives and Contextualisation

The general goal of the subject is to understand the relationships between the fundamental variables that intervene in the decisions of investment and financing in the company. Achieving this goal requires:

 

1. Understand the role of Financial Management in a company.

2. Understand the accounting and financial cycle of a company and the main concepts that are used.

3. Understand the main investment valuation techniques.

4. Understand the behavior of financial markets in order to know which variables interact in the formation of the market value of financial assets.

5. Understand the basics of sources of financing of a company.

6. Understand the effects that financial decisions have on the profitability of a company's shareholders.

Competences

  • Analysing, diagnosing, supporting and taking decisions in terms of organisational structure and business management.
  • Appropriately drawing up technical reports according to the customer's demands.
  • Carrying out different oral presentations for different audiences.
  • Demonstrating a comprehension of the principles, structure, organisation and inner workings of companies and organisations.
  • Identifying, analysing and solving complex problems and situations related to company organisations.
  • Students must be capable of adapting to new situations and new knowledge that may lead to new analysis and different stances.
  • Students must be capable of analysing, summarising, organising, planning and solving problems and making decisions.
  • Students must be capable of searching and analysing information of different sources.

Learning Outcomes

  1. Appropriately drawing up technical reports according to the customer's demands.
  2. Assessing a share portfolio.
  3. Assessing the value of the shares of the companies.
  4. Carrying out different oral presentations for different audiences.
  5. Describing the characteristics of the various sources of funding of a company.
  6. Identifying the basic properties that define a securities portfolio.
  7. Students must be capable of adapting to new situations and new knowledge that may lead to new analysis and different stances.
  8. Students must be capable of analysing, summarising, organising, planning and solving problems and making decisions.
  9. Students must be capable of searching and analysing information of different sources.
  10. Understanding the financial valuation of a SME project.

Content

1. Introduction to business finance.

a. The role of financial management in a company.

b. Accounting cycle and cash cycle.

c. Financial analysis of profit and loss account and the balance sheet.

 

2. Valuation of real investments.

a. The financial dynamics of investment projects.

i. The initial investment: fixed and current assets.

ii. Measuring the income generated by the investment.

iii. The investment project.

b. Investment selection criteria.

i. The value of money over time.

ii. NPV (Net Present Value). WACC.

iii. IRR (Internal Rate of Return).

iv. NFV (Net Final Value). Other criteria.

v. Anomalies in the use of investment selection criteria.

vi Inflation and the selection of investments.

c. Analysis of projects.

i. Sensitivity analysis. Scenario analysis.

 

3. Financial markets and valuation of financial assets.

a. Efficiency of financial markets. Classes. Consequences.

b. Valuation of financial assets.

i. The standard valuation process.

ii. Valuation of debt securities.

iii. Stock valuation. Main methods.

c. Risk, profitability and cost of capital.

i. Diversification

ii. Capital Asset Pricing Model.

iii. Cost of Capital.

 

4. Sources of financing and financial policy of a company.

a. External financing.

i. Analysis of different methods of raising equity capital.

b. Self-financing.

c. Debt financing.

i. Analysis of bond issues.

ii. Analysis of loans and other forms of debt.

d. Fundamentals of financial policy.

i. Debt effects: leverage effect and risk of shareholders.

ii. Dividend policy.

Methodology

The type of teaching planned for the subject is face-to-face teaching.he theoretical part will be presented through master classes. The teaching staff will present the topics encouraging students' participation by asking questions and comments. The exhibition of the subjects will not be limited to its direct content but also will include the analysis of the applied methods of reasoning. Some issues, due to their relevance, will be developed in two parts: the first one will focus on the content and the second on the methodology.

 

The practical part will consist of resolution of problems and cases, analysis of information on financial markets and companies, and reading and analysis of articles. Students will participate actively by solving exercises and analyzing news and articles. Students will be encouraged to become acquainted with the information on the financial markets available on the net, in particular the institutional stock market pages, derivatives markets, fixed income markets and companies.

 

The laboratory practices will be focused on the resolution of cases through the use of Excel, especially those functions related to the finances of habitual use in the business world.

Please note that the proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Laboratory practices 10 0.4 7, 8, 9
Master classes 28 1.12 5, 10, 6, 8, 3
Resolution of exercises in the classroom and analysis of cases 8 0.32 5, 10, 4, 6, 1, 8, 9, 3, 2
Type: Supervised      
Tutorials 15 0.6 7, 5, 10, 6, 8, 9, 3, 2
Type: Autonomous      
Search of documents 10 0.4 9
Solving cases and exercises 40 1.6 7, 6, 8, 9, 3, 2
Study 35.5 1.42 7, 5, 10, 6, 8, 9, 3, 2

Assessment

The final grade of the subject will consist of the weighted average of three scores:

1. Course follow-up. The correct follow-up of the course requires the attendance in class and the accomplishment and delivery of the practical cases, as much those realized autonomously as those carried out to the laboratory practices, besides the realization of the activities programmed during the course by each of the topics. Throughout the course, all these aspects will be controlled and that will result in a score that will represent 30% of the final mark of the course.

2. Evaluative activity. At the middle of the course there will be a test about the contents of the first part of the course. This score will represent 30% of the final mark. Obtaining a rating of 5 or more allows students to pass this part of the sylabus.

3. Final exam(see the exam calendar of the Faculty). Students will be assessed based on the contents of the second part of the course, which can be passed if they obtain a grade of 5 or higher. In this case the mark of the exam will represent 40% of the final mark of the course. On the same date that this exam there will be an additional test for students who have not passed the evaluative activity cited in 2. Obtaining a rating of 5 or more allows students to pass this part of the subject.

To pass the subject, it is necessary to obtain a minimum grade of 5 in the weighted average of the three notes that form the course evaluation (see points 1, 2 and 3 above).

If the weighted average mentioned in the previous point is lower than 3,5, the student will have to repeat the subject next year. Otherwise the student can accomplish the recovery process described below (Retake Process).

A student is considered "Not evaluable" to the subject as long as he has not participated in any of the assessment activities. Therefore, it is considered that if a student does any part of the activities of course evaluation cited above, can no longer opt for a "Not evaluable".

 

Calendar of evaluation activities

The dates of the evaluation activities (exercises, assignments ...) will be announced well in advance during the semester.

The dates of the midterm and final exams are scheduled in the assessment calendar of the Faculty.

"The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity."Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB).Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an Application for exams' rescheduleat https://eformularis.uab.cat/group/deganat_feie/application-for-exams-reschedule

 

Grade revision process

After all grading activities have ended students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.

 

Retake Process

"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations).Additionally, it is required that the student to have achieved an average grade of the subject between 3.5 and 4.9.

The date of the retake exam is posted in the calendar of evaluation activities of the Faculty. Students taking this exam and passing will get a grade of 5 for the subject. For the students that do not pass the retake, the grade will remain unchanged, and hence, will fail the course. 

 

Irregularities in evaluation activities

Despite other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "whenever a student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of occurrence of various irregularities in the evaluation of the same subject, the final grade of this subject will be 0"Section 10 of Article 116. Results of the evaluation. (UAB Academic Regulations).

Final note: The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses.

 

 

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Course follow-up 30% 0 0 7, 4, 1, 8, 9
Evaluative activity 30% 1.5 0.06 5, 10, 6, 3, 2
Final exam 40% 2 0.08 5, 10, 6, 8, 3, 2

Bibliography

Brealey, R; Myers, S, Allen, F. (2015): Principios de Finanzas Corporativas. McGraw Hill. 11ª edición.

Brealey, R; Myers, S. Marcus, A; Mateos, (2010): Finanzas Corporativas. McGraw Hill. UNED.

Ross, S. Westerfield, R; Jordan, B. (2018): Fundamentos de Finanzas Corporativas. 11ª edición. McGraw Hill

Martínez Abascal, Eduardo (2014): Finanzas para directivos. 2a ed. McGraw Hill.