Finance II
Code: 42729 ECTS Credits: 10| Degree | Type | Year |
|---|---|---|
| 4310025 Economics and Business Administration | OT | 0 |
Contact
- Name:
- Maria Antňnia Tarrazón Rodón
- Email:
- mariaantonia.tarrazon@uab.cat
Teachers
- Joan Montllor Serrats
- Maria Antňnia Tarrazón Rodón
Teaching groups languages
You can view this information at the end of this document.
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
- 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.
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
Activities and Methodology
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Lectures with ITC support | 37.5 | 1.5 | 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
| Resolution of exercises | 37.5 | 1.5 | 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 |
| Type: Supervised | |||
| Tutoring and monitoring work in progress. In-class presentations | 62.5 | 2.5 | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
| Type: Autonomous | |||
| Study, Reading, Exercise solving, Essays writing, | 79.5 | 3.18 | 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
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.
Assessment
Continous Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| Exercises and essays | 35% | 30 | 1.2 | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
| Topic Exam I | 16.25% | 0.75 | 0.03 | 1, 4, 5, 8, 9, 12, 13 |
| Topic Exam II | 16.25% | 0.75 | 0.03 | 1, 4, 5, 8, 9, 12, 13 |
| Topic Exam III | 16.25% | 0.75 | 0.03 | 1, 4, 5, 8, 9, 12, 13 |
| Topic Exam IV | 16.25% | 0.75 | 0.03 | 1, 4, 5, 8, 9, 12, 13 |
1. 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:
- the mark for each subject within the module is higher than or equal to 3.0 (in a 0 to 10 scale), and
- the final mark for that module is higher than or equal to 5.0 (in a 0 to 10 scale).
IMPORTANT: Class attendance is mandatory. In order to pass each subject, students must attend all lectures. Special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators.
- 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 after the re-take exams the student successfully passes the module, her or his mark for that module will be upgraded accordingly, otherwise the previous grade will remain valid. Two restrictions apply for the results after retaking:
- the highest mark for any subject retaken is 5.5; and
- the final grade of the module after the re-take exams cannot be higher than 6.8.
The calendar for the re-retake exams will be announced along with the grades report.
2. 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 during the course, and 65% will consist of acomprehensive final examination. The duration andnature of the final examination isdecided by each professor.
3. Final exams are compulsory. Re-take exams are only thought for those students having previously written a first exam and failed.
This modul does not offer the option for comprehensive evaluation.
Bibliography
Basic bibliography
Brealey, R.A., S.C. Myers, F. Allen and A. Edmans Principles of Corporate Finance. 14th edition. McGraw-Hill. 2023.
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. R. Stata.
Language list
| Name | Group | Language | Semester | Turn |
|---|---|---|---|---|
| (TEm) Theory (master) | 30 | English | second semester | morning-mixed |