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.