Checking date: 08/05/2020


Course: 2019/2020

Financial Management
(13170)
Dual Bachelor in Computer Science and Engineering, and Business Administration (2011 Study Plan) (Plan: 258 - Estudio: 233)


Coordinating teacher: TRIBO GINE, JOSE ANTONIO

Department assigned to the subject: Business Administration Department

Type: Compulsory
ECTS Credits: 6.0 ECTS

Course:
Semester:




Requirements (Subjects that are assumed to be known)
Financial Economics
This course has as its main objective to present the different financial instruments that can be used to raise capital for a company. Starting from this, we proceed to introduce the concept of cost of capital, which will allow companies to decide the best way to raise capital. A second objective is to understand that the financial instruments used by the company to raise capital, affects the internal equlibrium among the different stakeholders in he firm To achieve these fundamental objectives, the student must acquire a range of knowledge, skills and attitudes. With regard to knowledge, the end of the course the student will be able to: - Understand that a firm is a portfolio of financial assets, which is the mirror image of their real assets. - Understand that a company is a nexus of contracts between various stakeholders. - Understand the basic concept of the cost of capital and the approximations that apply to find it. - Use the concept of arbitrage to value financial assets from financial flows discounted using the discount rate as the cost of capital. - Understand that an non-typical project valuation of a company is different from the general assessment of the same. - Be able to extract from the observation of the capital structure of a company, a measure of the overall risk of this. - Understand that a financial instrument not only serves to raise capital, but it alters the balance of power within the company. - Understand that you may use financial structure to reduce conflicts of interest between the various stakeholders. - Use an integrated manner the definition of a financing policy with the policy of compensation to shareholders. - Be able to extract from the observation of the capital structure of a company, the possibilities for this company to be subject to corporate mergers and acquisitions movements Concerning the skills these can be classified into two groups one of specific skills and other more generic skills or skills. As for specific skills, the end of the course students will be able to: - Understand the concept of valuing a business, which is not only evaluate their actions. - Be able to discriminate between valuing a company and evaluate a project for a company - Estimate the cost of capital from the cost of the various financial assets. - Using comparable to approaches to relevant parameters that assess companies. - Get a measure of the level of risk that a company watching its financial structure.
Description of contents: programme
This is a basic introductory course in corporate finance. Basically, we present different elements that are necessary to value companies and how to use financial structure to increase the value of a company taking into account the effect they have on the overall firm's risk. In a complementary manner, we will study how the financial structure can be used as an instrumental element to reduce agency conflicts within the firm, and compensation policies to complement various stakeholders (mainly shareholders) The progam is divided in five main parts: FIRST PART: Description of the main financial instruments. Pros and cons of each financial instrument SECOND PART: A firm's financial structure. The Modigliani-Miller framework THIRD PART: Firm's weighted average cost of capital. FOURTH PART: Firm valuation and Project valuation. Differentiation between standard and non-standard projects. FIFTH PART: Shareholders' compensation and its relationship with financial structure.
Learning activities and methodology
Teaching methodology will include: (1) Lectures, where the skills that students should acquire will be presented. ost interested (2) Discussion of real cases extracted from recent national and international business press (3) Resolution of exercises by the student that will serve to self-assess their knowledge and acquire the necessary skills. (4) Sharing of the answers to the exercises, some of which will be in the group. This allows consolidate knowledge and develop the ability to analyze and communicate relevant information to solve problems. Besides sharing promote the exchange of views critical both between teacher and students and among students.
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40

Basic Bibliography
  • Brealey, R. A. and S. C. Myers. Financial Management. McGraw Hill. 1998

The course syllabus may change due academic events or other reasons.