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SYLLABUS FINANCE II COURSE 2017-18: GENERAL INFORMATION

Subject Name: Finance II

Academic year: 2017-2018
Coordinator: Ana Olivera
Professor: Emili Batlle
Department: Business
Credits: 6

Estimated dedication hours Total hours: 150

Mandatory activities 60
- Theory 25
- Theory-practice 25
- Problem-solving practice 10
Guided work 40
Autonomous self-learning 50

Targeted skills

Transversal skills Common to UB

- The ability of communication (oral and written) in English specific to finance
discipline.
- Learning and responsibility (the ability to analyse, synthesise, and apply new
knowledge to practical issues, decision-making and adaptation in novel settings).

Subject’s specific skills

- Ability to identify, analyse and select the investment projects according to financial
analysis method.
-Ability to select the appropriate method and quantitative tools in order to address
the specific financial problem of a company.
-Ability to evaluate and take decision taking into consideration the real financial and
economic situation and available data.

Learning objectives

Referring to knowledge

— Get familiarized with the main types of the decisions in corporate finance such as
financing, investment project and dividend decisions.

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— Knowing and studying different valuation techniques of a firm.

— Analysing the financial structure of a company and determining the average cost of
financing (WACC).

— Get familiarized with the mergers& acquisition operations in corporate world.

Referring to skills

— Acquire the knowledge of specific financial techniques used for investment appraisal
and company valuation.
— Acquire the knowledge of Excel functions in financial analysis.
— Acquire the knowledge about terms and vocabulary of English in corporate finance.

Referring to attitudes, values and norms

To understand the subjectivity of financial decisions in real life situations and to
know about the importance of ethics in context of financial crisis.

Main blocks of the topics

I Introduction to corporate finance

II Mergers and Acquisitions

III Investment project analysis

IV Capital structure, cost of capital and valuation of the firms

Methodology and teaching/training activities

Subject methodology is a combination of lessons with practical component and

complementary learning activities (case solving, exercises, IT practices etc.), done
individually or in small working groups, in class or at home. The teaching hours are
distributed as follows:

— Each week, we will have two 1.5 hour class sessions. During these sessions, we will
work both on theory and practical examples that will guarantee the achievement of the
learning objectives.
— Each week, we will have one 1 hour practice & tutorial session. This session will be
used to address the doubts of the students regarding the exercises posted and working
on particular practical exercises or cases. These sessions will be done in subgroups,
running them for every student each two weeks.

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Students will be provided with the power points on each topic with the main concepts,
examples, explanations and the suggested readings.
The Campus Virtual will also be the place where the students can consult grades and
other information regarding the evaluation process.

Also it will be used other type of support materials as videos and the work on a IT room
based on excel files templates.

Mandatory classes are important to follow the subject successfully. However, students
which decide to work on subject without attending classes are suggested to work on the
bibliography of each topic and solve all of the exercises and cases by themselves. The
final answers for the course assignments will be posted in campus virtual. Students
which are enrolled in the subject under continuous evaluation have to attend the
practice sessions since some of the exercises will be done and collected there.

Evaluation to certify knowledge

The evaluation process of this subject provides two options to students, continuous
evaluation or unique evaluation.

A. Continuous evaluation

Continuous evaluation is an option, which implies following actively the subject and
consists in:

a) M&A project. It´s a project based on the analysis of three press releases on some
recent corporate transactions, linking them with contents explained on topic 2 and 3
of program and prepared in groups (6 people by group). It´s required to elaborate a
written report about 5/6 pages and also to make a presentation in class in front of
the rest of the students during 15/20 minutes. A PowerPoint presentation will be
required to support this presentation. M&A project accounts for 15% in final grade.
b) Test 1. It´s a multiple choice test of 15/20 questions related to topics from 1 to 9. It
accounts for 30 % in the final grade.
c) Final exam. It account for 55 % in the final grade. This exam covers all the topics
of the program, either topics covered by Test.
d) Attendance is not compulsory but could be considered on the final grade of the subject.
The professor saves the right of improving the final grade, if it´s required, based on
participation and attitude of student in class.

Students who choose to follow continuous assessment need to bear in mind that:

1. The 45 % of the grade due to the continuous evaluation will be taken into account
only if the grade of the final exam is equal or larger than 3.5.

2. If you take first test it means that sudent is following continuous evaluation and you
have to present M&A project.

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B. Unique evaluation

Final exam is the unique basis of final grade. The passing grade in this case is 5.0.

Final exam will be exactly the same for all students, regardless if you are coming from
unique or continuous evaluation.
This final exam will have two parts, the theoretical one and the practical one. Each of them
will count 50% in the grade of the final exam. The corresponding grade will be computed
only if you will score at least 3.0 over 10 in each of the parts. Failure to meet this condition
will lead to final grade of the course equal to 3.4.

The dates of the exams are published at beginning of the course and will not be
moved for any reason.

Bibliography

Main bibliographical sources:

BERK, Jonathan y DEMARZO, Peter Corporate Finance, Pearson. (ed. 2008)

BREALEY, Richard A., MYERS, Stewart C. y ALLEN, Franklin, Principles of Corporate
Finance, McGraw Hill.
DAMODARAN, Aswath, Applied Corporate Finance, John Wiley.
DURBAN OLIVA, Salvador, Finanzas Corporativas, Pirámide.
FERNÁNDEZ, Ana Isabel, GARCÍA OLALLA, Myriam, Las decisiones Financieras de la
Empresa, Ariel Economía.
MASCAREÑAS PÉREZ-ÍÑIGO, Juan, Fusiones, adquisiciones y valoración de empresas,
Ecobook – Editorial del Economista, Madrid.
MASCAREÑAS PÉREZ-IÑIGO, Juan, Finanzas para directivos, Pearson.
PORTILLO TARRAGONA, M. Pilar, El impacto fiscal en la selección de proyectos de
inversión, Estrategia Financiera, Febrero 2005, nº 214.
SUÁREZ SUÁREZ, Andrés S., Decisiones Óptimas de Inversión y Financiación en la
Empresa, Ediciones Pirámide S.A.