Finance II
Code: 102111 ECTS Credits: 6| Degree | Type | Year | Semester |
|---|---|---|---|
| 2501231 Accounting and Finances | OB | 3 | 1 |
Contact
- Name:
- Luis Fernando Romero Perez
- Email:
- luisfernando.romero@uab.cat
Teaching groups languages
You can check it through this link. To consult the language you will need to enter the CODE of the subject. Please note that this information is provisional until 30 November 2023.
Teachers
- Luis Fernando Romero Perez
Prerequisites
General requirements to get to the third career course and have completed Finance I
Objectives and Contextualisation
Finance II provides basic training in business finance in the degree of Accounting and Finance, based on the knowledge and skills acquired in Finance I, on valuation of assets, financial markets and the relationship between the company and the market. Based on the financial reasoning acquired in Finance I, students must master the selection of investment projects, the selection of financing sources and the relationship of both with the business strategy.
The axis of the course is the creation by companies in the real economy by selecting the most appropriate investments for their strategy and the financial dynamics that derives from the relationship between investment and financing, taking into account the objectives of profitability and risk management. . The double perspective of time and risk introduced in Finance I now applies to the financial function of the company
Competences
- Behaving in an ethical and professional way while carrying out the accounting or financial advisory services entrusted.
- Communicating in oral and written form in Catalan, Spanish and English, in order to be able to summarise and present the carried out project in both forms.
- Efficiently searching information, discriminating irrelevant information.
- Make changes to methods and processes in the area of knowledge in order to provide innovative responses to society's needs and demands.
- Organising the work, regarding order and planning.
- Planning and conducting the accounting organization of a company or group of companies.
- Searching for innovative and imaginative solutions.
- Selecting and interpreting the financial information of markets and companies.
- Students must be able to adapt to changing environments.
- Students must be capable of applying their knowledge to their work or vocation in a professional way and they should have building arguments and problem resolution skills within their area of study.
- Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
- Students must be capable of communicating information, ideas, problems and solutions to both specialised and non-specialised audiences.
- Students must develop the necessary learning skills to undertake further training with a high degree of autonomy.
- Students must have and understand knowledge of an area of study built on the basis of general secondary education, and while it relies on some advanced textbooks it also includes some aspects coming from the forefront of its field of study.
- Take sex- or gender-based inequalities into consideration when operating within one's own area of knowledge.
Learning Outcomes
- Analyse a situation and identify points for improvement.
- Analyse the sex- or gender-based inequalities and the gender biases present in one's own area of knowledge.
- Assessing investment projects.
- Calculating the maximum potential loss in an active risk management strategy.
- Communicate using language that is not sexist or discriminatory.
- Communicating in oral and written form in Catalan, Spanish and English, in order to be able to summarise and present the carried out project in both forms.
- Consider how gender stereotypes and roles impinge on the exercise of the profession.
- Defining the characteristics of the various sources of funding.
- Efficiently searching information, discriminating irrelevant information.
- Identify situations in which a change or improvement is needed.
- Identify the principal forms of sex- or gender-based inequality and discrimination present in society.
- Interpreting the financial statements produced by companies, connecting the different parts and, if appropriate, detecting inconsistencies or possible incorrect data.
- Organising the work, regarding order and planning.
- Presenting a specific financial planning for a concrete client.
- Propose projects and actions that incorporate the gender perspective.
- Students must be able to adapt to changing environments.
- Students must be capable of applying their knowledge to their work or vocation in a professional way and they should have building arguments and problem resolution skills within their area of study.
- Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
- Students must be capable of communicating information, ideas, problems and solutions to both specialised and non-specialised audiences.
- Students must demonstrate they have an innovative and entrepreneur spirit.
- Students must develop the necessary learning skills to undertake further training with a high degree of autonomy.
- Students must have and understand knowledge of an area of study built on the basis of general secondary education, and while it relies on some advanced textbooks it also includes some aspects coming from the forefront of its field of study.
Content
1. Analysis of investment projects.
1.1 The financial dynamics of the company: Benefits versus cash flows.
1.2 The net final value from aggregate projects.
1.3 The net present value.
1.4 Abnormalities in the analysis of projects: Mixed projects and Fishcer rate.
2. Risk in investment decisions and financing.
2.1 Expected value, true equivalent and risk premium in the analysis of projects.
2.2 Estimation of the required profitability from the Securities Market Line.
2.3 Introduction to sensitivity analysis.
2.4 Risk in international investment and financing decisions.
3. Introduction to the valuation of options and futures.
3.1 Concepts of purchase option and put option.
3.2 The parity relation between the purchase option and the put option.
3.3 Binomial evaluation.
3.4 Introduction to futures prices.
4. Risk management through derivatives.
4.1 Coverage strategies with forwards and futures.
4.2 Coverage strategies through options.
4.3. Coverage strategies through swaps.
5. Real options
5.1 The analysis of options in the real economy: The capture of opportunities.
5.2 The option to expand.
5.3 The option to leave.
5.4 Introduction to the valuation of real options.
Methodology
Half of the credits will be theoretical and the other half practical. The theoretical part will be exposed through lectures. The teacher will present the topics encouraging the participation of the students through questions and comments. The presentation of the topics will not be limited to its direct content but will include the analysis of the applied reasoning methods.
The practical part will consist of the resolution of problems, analysis of information of the financial markets and of the companies and reading of related articles.
The proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses
The teacher will have to allocate approximately 15 minutes of some class to allow his students to answer the surveys of evaluation of the teaching performance and of evaluation of the asignatura or module.
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 | |||
| Master classes | 33 | 1.32 | 13, 21, 17, 18 |
| Resolution of exercises in the classroom and analysis of cases | 12.5 | 0.5 | 9, 19, 18, 6, 3 |
| computerized practices | 4 | 0.16 | 4, 21, 19, 6, 3 |
| Type: Supervised | |||
| tutorials | 20 | 0.8 | 13, 21, 19, 17, 18 |
| Type: Autonomous | |||
| Resolution of assumptions (exercises and cases) | 24 | 0.96 | 8, 12, 21, 17, 18 |
| Search of documentation | 12 | 0.48 | 17, 18, 6 |
| study | 41 | 1.64 | 9, 12, 13, 22, 21, 19, 17, 18, 3 |
Assessment
EVALUATION:
This subject does not offer the option for comprehensive evaluation.
The continued evaluation of Finances II consists of three components:
a) A partial with the first part of the course with a weight of 30%
b) Delivery of a roadworthiness study with a weight on the final grade of 30%.
c) Final exam (40% of the grade)
Schedule of evaluation activities
The dates of the different evaluation tests (partial exams, exercises in the classroom, delivery of works, ...) will be announced well in advance during the semester.
The date of the final exam of the subject is scheduled in the exam calendar of the Faculty.
"The programming of the evaluation tests can not be modified, unless there is an exceptional and duly justified reason why an evaluation act can not be carried out, in this case, the persons responsible for the qualifications, after consulting the teaching staff and to the affected student body, they will propose a new program within the corresponding academic period. " Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB)
The students of the Faculty of Economics and Business who in accordance with the previous paragraph need to change an evaluation date must present the request by filling in the document Request reprogramming test https://eformularis.uab.cat/group/deganat_feie/nou-reprogramacio-de-proves
Procedure for review of qualifications
Coinciding with the final exam will be announced the day and the medium in which the final grades will be published. In the same way, the procedure, place,date and time of the review of exams in accordance with the regulations of the University will be informed.
Recovery Process
"To participate in the recovery process the students must have been previously evaluated in a set of activities that represent a minimum of two thirds of the total grade of the subject or module." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations). The students must have obtained an average grade of the subject between 3.5 and 4.9.
The date of this test will be scheduled in the exam calendar of the Faculty. The student who presents himself and passes it will pass the subject with a grade of 5. Otherwise, he will keep the same grade.
Irregularities in evaluation acts
Notwithstanding other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the event that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation act, it will be scored with a 0 evaluation act, regardless of the disciplinary process that can be instructed In case of various irregularities occur in the evaluation acts 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)
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 |
|---|---|---|---|---|
| Exam | 40 | 2 | 0.08 | 2, 1, 4, 5, 8, 20, 11, 10, 12, 14, 15, 22, 21, 19, 17, 18, 16, 6, 7, 3 |
| First continuous assessment test | 30 | 1.5 | 0.06 | 9, 20, 13, 22, 21, 17, 18, 6 |
| Work feasibility study | 30 | 0 | 0 | 4, 8, 14, 22, 19, 17, 18, 6, 3 |
Bibliography
- APONTE, Rene; MUÑOZ, Fernando; ÁLZATE, Laura. La evaluación financiera de proyectos y su aporte en la generación de valor corporativo. Ciencia y poder aéreo, 2017, vol. 12, no 1, p. 144-155
- BREALEY, R., S.C. MYERS y F. ALLEN. Principios de finanzas corporativas. 8ª edición. Madrid: McGraw-Hill, 2006.
- GARCÍA, M.; MATÍNEZ, F. Manual del asesor financiero. Ediciones Parainfo, 2014
- HULL, J. Introducción a los mercados de futuros y opciones. Prentice-Hall, Madrid, 2010.
- .Payback o plazo de recuperación -Definición, qué es y concepto | Economipedia(2020). Available at: https://economipedia.com/definiciones/payback.html (Accessed: 26 January 2020).
- QUINTERO, Dora P. Los derivados financieros y la administración de riesgos en las organizaciones. Revista Espacios, 2017, vol. 38, no 36
- Tasa interna de retorno (TIR) -Definición, qué es y concepto | Economipedia(2020). Available at: https://economipedia.com/definiciones/tasa-interna-de-retorno-tir.html (Accessed: 26 January 2020).
- Valor actual neto (VAN) -Definición, qué es y concepto | Economipedia(2020).Available at: https://economipedia.com/definiciones/valor-actual-neto.html (Accessed: 26 January 2020
Software
We will use part of the spreadsheet, tax simulation programs and other management programs