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2021/2022

Finance II

Code: 42729 ECTS Credits: 10
Degree Type Year Semester
4310025 Economics and Business Administration OT 0 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:
Maria Antňnia Tarrazón Rodón
Email:
MariaAntonia.Tarrazon@uab.cat

Use of Languages

Principal working language:
english (eng)

Other comments on languages

This master is taught and evaluated entirely in English.

Teachers

Joan Montllor Serrats
Maria Antňnia Tarrazón Rodón
Guilhem Fraysse
Ane Elixabete Ripoll Zárraga

Prerequisites

Fundamentals of Economics and Business I

Fundamentals of Economics and Business II

Objectives and Contextualisation

Finance II: Corporate Financial Policy, Investments & Financial Institutions

Value creation in corporations: Financial policy, corporate growth and corporate restructuring. Corporate and banking investment decisions, risk management in domestic and international contexts.

Competences

  • Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
  • Carry out empirical studies.
  • Carry out oral presentations in the English language.
  • Contextualise economic problems through the use of formal models that enable quantitative analysis.
  • Demonstrate an understanding of the investment and financing coordinates as they affect the financial decisions of the company
  • Demonstrate an understanding of the mechanisms and characteristics of balance in financial markets
  • Relate financial decision to the company strategy as a whole
  • Respect ethical, social and environmental values.
  • Show an understanding of decision-making models in the area of real investment project selection, company financing and investment and international financing.
  • Show an understanding of the principles of evaluations of basic and derived financial assets
  • Show an understanding of the principles of financial investment: portfolio selection and financial investment strategies
  • Situate these company financial decisions in the framework of the financial market
  • Understand academic research in the areas indicated.
  • Understand the time and risk coordinates as they affect the financial markets
  • Use different statistical programs to process data.

Learning Outcomes

  1. Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
  2. Carry out empirical studies.
  3. Carry out oral presentations in the English language.
  4. Contextualise economic problems through the use of formal models that enable quantitative analysis.
  5. Demonstrate an understanding of the investment and financing coordinates as they affect the financial decisions of the company
  6. Demonstrate an understanding of the mechanisms and characteristics of balance in financial markets
  7. Relate financial decision to the company strategy as a whole
  8. Respect ethical, social and environmental values.
  9. Show an understanding of decision-making models in the area of real investment project selection, company financing and investment and international financing.
  10. Show an understanding of the principles of evaluations of basic and derived financial assets
  11. Show an understanding of the principles of financial investment: portfolio selection and financial investment strategies
  12. Situate these company financial decisions in the framework of the financial market
  13. Understand academic research in the areas indicated.
  14. Understand the time and risk coordinates as they affect the financial markets
  15. Use different statistical programs to process data.

Content

1. Capital Structure, Cost of Capital and Value of the Firm

2. Dividend Policy

3. Mergers and Acquisitions

4. Capital Budgeting, Project Analysis and Investment Criteria

5. Real Options Analysis

6. International Financing and Investment Decisions

7. International Risk Management

8. Banking and Financial Institutions

 

Methodology

The activities that will allow the students to learn the basic concepts included in this course are:

1. Theory lectures where the instructor will explain the main concepts.

The goal of this activity is to introduce the basic notions and guide the student learning.

 2. Problem Sets

In some subjects, a problem set which students will have to solve individually or in teams will be included in every unit. The goal of this activity is twofold. On one hand students will work with the theoretical concepts explained in the classroom, and on the other hand through this practice they will develop the necessary skills for problem solving.

 3. Practice lectures

The aim of this activity is to comment on and solve any possible doubt that students may have had solving the problem assignment. This way they will be able to understand and correct any errors they may have had during this process.

 4. Essay writing

In some subjects, students will produce written essays on the topics proposed.

5. Tutoring hours

Students will have some tutor hours in which the subject instructors will help them solve any doubts they may have.  

Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Lectures with ITC support 37.5 1.5 1, 13, 14, 4, 7, 6, 5, 12, 11, 10, 2, 9, 8, 15
Resolution of exercises 37.5 1.5 1, 14, 4, 7, 6, 5, 12, 11, 10, 2, 9, 8, 15
Type: Supervised      
Tutoring and monitoring work in progress. In-class presentations 62.5 2.5 1, 13, 14, 4, 7, 6, 5, 12, 11, 10, 2, 3, 9, 8, 15
Type: Autonomous      
Study, Reading, Exercise solving, Essays writing, 79.5 3.18 13, 14, 4, 7, 6, 5, 12, 11, 10, 2, 9, 8, 15

Assessment

The module consists of a number of different subjects or parts taught by different professors. The final mark for the module will consist of the average of the marks of each subject within the module.

The module is considered successfully passed if:

  1. the mark for each subject within the module is higher than or equal to 3.0 (in a 0 to 10 scale), and
  2. the final mark for that module is higher than or equal to 5.0 (in a 0 to 10 scale).

If the module is not successfully passed the MEBA coordinators will ask the student to re-take the exams for those subjects that, according to the coordinators and the professors opinions, may help the student to successfully pass the module. If the student passes the re-take exam he or she will obtain a mark of 5 for that subject, otherwise the previous grade will remain valid. The calendar for the re-retake exams will be announced along with the grades report

The mark -between 0 and 10- for each subject will be computed by each professor based on his or her ow criteria and on the student's performance. As a general rule, 35% of the mark will correspond to the assessment of the continuous work of the student duringthe course, and 65% will consist of a comprehensive final examination. The duration and nature of the final examination is decided by each professor.

IMPORTANT: in order to pass each subject students must attend at least 80% of the lectures (special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators)

Final exams are compulsory. Re-take exams are only thought for those students having previously written a first exam and failed.

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Exercises and essays 35% 30 1.2 1, 13, 14, 4, 7, 6, 5, 12, 11, 10, 2, 3, 9, 8, 15
Topic Exam I 16.25% 0.75 0.03 1, 13, 4, 5, 12, 9, 8
Topic Exam II 16.25% 0.75 0.03 1, 13, 4, 5, 12, 9, 8
Topic Exam III 16.25% 0.75 0.03 1, 13, 4, 5, 12, 9, 8
Topic Exam IV 16.25% 0.75 0.03 1, 13, 4, 5, 12, 9, 8

Bibliography

 

Basic bibliography

Brealey, R.A., S.C. Myers and F. Allen, Principles of Corporate Finance. 13th edition. McGraw-Hill. 2020.

Hull, J. Risk Management and Financial Institutions. 5th edition. Wiley. 2018.

Shapiro A.C. International Financial Management. e-book. Wiley. 2014. UAB e-catalogue.

Solnik, B. and D. McLeavey. Global Investments. New international edition. e-book. Pearson. 2013. UAB e-catalogue.

Trigeorgis, L. Real Options. Managerial Flexibility and Strategy in Resource Allocation. MIT Press. 1996.

 

Complementary bibliography

Bierman, H. and S. Smidt. Advanced Capital Budgeting: Refinements in the Economic Analysis of Investment Projects. Routledge. 2007.

Hull, J. Options, Futures and Other Derivatives, 10th edition. Pearson, 2018.

Lee, C-F. and A.C. Lee (eds.). Encyclopedia of Finance. 2nd edition. e-book. Springer. 2013. UAB e-catalogue.

The New Palgrave Dictionary of Economics. e-book. Macmillan. 2018. UAB e-catalogue.

 

 

Software

Excel. Stata