Checking date: 27/04/2020

Course: 2019/2020

Corporate Finance
Study: Master in Accounting (358)

Coordinating teacher: TOLDRA SIMATS, ANNA

Department assigned to the subject:

Type: Electives
ECTS Credits: 3.0 ECTS


Students are expected to have completed
Financial economics
Competences and skills that will be acquired and learning results.
Basic competences CB8 That students are able to integrate knowledge and face the complexity of formulating judgments based on information that, being incomplete or limited, includes reflections on social and ethical responsibilities linked to the application of their knowledge and judgments CB9 That the students know to communicate their conclusions and the knowledge and last reasons that sustain them to specialized and non-specialized public in a clear and unambiguous way General competences CG1 Acquire the ability to locate, extract, and analyze information from multiple sources, and to form a reasoned opinion that can be defended in written or oral form to different audiences. CG2 Acquire the ability to plan optimally in the allocation of contracted resources (selection of work team and budgeting project hours). CG3 Acquire the ability to submit written reports orally to both the members of your team and your clients. CG5 Ability to solve problems, from the analysis of data and structured or unstructured information, which may involve the management of databases, or information systems and business management. General CG6 Acquire the ability to work in organized and structured work teams where each member is responsible for a part of which must subsequently inform the rest of the team. CG7 Ability to diagnose potentially complex real problems by integrating and applying knowledge of different subjects. General CG8 Acquire the ability to direct the search and learning of any new situation autonomously. CG9 Ability to work in changing areas and to anticipate new situations. Specific competences CE9 Ability to apply advanced techniques to determine the value of a company based on its accounting information, systematic risk and atypical projects, as well as to perform a correct and detailed financial planning in different and uncertain scenarios. CE10 Ability to understand the concept of risk and its different types to be able to manage it, and relate it to the different corporate structures (financial and non-financial). CE11 Ability to use advanced techniques to manage each of the risks that affect a company.CE16 Ability to apply, according to current regulations at all times, advanced management techniques and accounting design of a company taking into account their financial, accounting and economic needs in order to ensure that accounting is the instrument of control and management that investors need. CE17 Acquire the ability to know and propose solutions to the different agency problems that arise within the company.
Description of contents: programme
1: The financial function and financial markets 1.1 The financial function 1.1.1 Financial objective and long term strategy (ACCA G.1.a), G2.a)) 1.1.2 Internal Financial function 1.1.3 Outsourced financial function (ACCA G.1.c)) 1.1.4 Shared financial functions vs global business services (ACCA G.1.c)) 1.1.5 IT developments and the financial function 1.2 Financial markets 1.2.1 Market structure 1.2.2 Primary vs secondary 2: Investments static and dynamic methodologies 2.1 Static investment methodologies 2.2 Dynamic investment methodologies 3: Financing sources and issues of securities 3.1 Equity financing 3.2 Debt financing 3.3 Security issuance 3.4 Alternative financing sources (Crowdfunding and ICOSs) 4: Cost of capital 4.1 Cost of equity 4.2 Cost of debt 4.3 Weighted average cost of capital 5: Optimal capital structure 5.1 Modigliani and Miller irrelevance proposition 5.2 The role of corporate and personal taxes 5.3 The trade-off theory of capital structure 5.4 The pecking order theory 5.5 Other theories and empirical evidence 6: Interactions between investment and financing decisions: the principal agent problem 6.1 The asset substitution and risk-shifting problem 6.2 The debt overhang problem 6.3 The free cash flow problem 6.4 The soft budget problem 7: Contract theory 7.1 Complete contracts 7.2 Incomplete contracts
Learning activities and methodology
AF3 Theoretical practical classes AF5 Tutorials AF6 Group work AF7 Individual student work AF8 Partial and final exams Code activity Nº Total hours Nº HoursPresencial % Student's presence AF3 63 63 100% AF5 42 10.5 25% AF6 78 0 0% AF7 78 0 0% AF8 9 9 100% TOTAL SUBJECT 270 82.5 31%
Assessment System
  • % end-of-term-examination 70
  • % of continuous assessment (assigments, laboratory, practicals...) 30
Basic Bibliography
  • Brealye R., Myers S., Allen F.. Principles of Corporate Finance. Mc Graw Hill. 2015

The course syllabus and the academic weekly planning may change due academic events or other reasons.