BUSINESS FINANCE. Instituto Universitario de Investigación en Estudios Norteamericanos. Benjamin Franklin

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1 Instituto Universitario de Investigación en Estudios Norteamericanos Benjamin Franklin BUSINESS FINANCE Spring 2014 Course Syllabus: Business Finance (Class Code) Class Hours: [ ], [ ]am to [ ]am Classroom: [ ] January 14th through May 1st Course Credit: 3 hours Course Description: The course presents the major elements of business finance, such as financial statement analysis/evaluation, discounted cash flow calculations, the cost of capital the diferent alternatives to valuate stocks (DCF and Others). After completing this course, the student should be equipped with fundamental financial management knowledge and analytical skills to think like a business owner/investor. One key concept: Business Finance is about investing. Course Objectives: 1. To review the key concepts in finance (institutions, financial market, financial statements analysis, financial math, etc). 2. To understand how to measure and analyze the financial performance for a Company. 3. To learn how to measure and analyze the cost of capital for a company. 4. To understand how to calculate the value of a certain Company and the implications of a capital increase. 5. Build a financial model with spreadsheets in order to write an investment report of a certain Company, being able to determinate the value of a Company by using several methodologies.

2 Course Prerequisites: ACCT 2113, 2123 and ECON 1113, 1123, 2843 (i.e., whatever course catalog says). Required Materials: 1. Textbook: [ ] 2. Computer or Tablet with Microsoft Excel or Equivalent Note: Students need to teach themselves how to use their own spreadsheets software other than Microsoft Excel. Exams and Other Performance Opportunities: Weighted Schedule Chapters Covered Exam 1 20 [ ] [1,2, 3 and 4] Exam 2 20 [ ] [5, 6 and 7] Exam 3 25 [ ] [8 and 9] Investment Report 20 May, 1st Classroom participation 15 Attendance, Participation, etc Total points 100 Exams are generally multiple-choice, closed-book, closed-notes and are not cumulative. You ll need your financial calculator, and you may bring one 4 x 6 Note Page with no notes attached (glued, stapled, taped, etc.), and nothing else. The Note Page may not contain any information from a previous semester Exam. Excused absences can be obtained with appropriate justification (religious holiday, documented illness/accident, bereavements, etc. with reasonable written notice). If you miss an Exam you will receive a zero grade unless you have an excused absence with appropriate written documentation and justification provided to the Instructor in a reasonable time frame. Investment Report and Financial Modelling Exercise: Students can earn 20% of their total course grade by producing and delivering Investment Report from a publicly-traded company (to be choose by each student from a listed provided) utilizing key analytical concepts from the course material and company information from a designated company s Annual Report. Students can obtain a publicly-traded company s financial information from its annual accounts posted on the website for the Comision Nacional del Mercado de Valores ( In order to make a fundamental analysis, students should perform a DCF analysis based on a Business Plan. Note: The first week of February, each student will be able to choose their own company from a listed to be provided in Class. If the student does not choose any of the Companies provided, the Professor will assign a company from the list. During the last 6 hours of April, Students should be able to work in class with the professor to finish the finance modell of the Company. Note: if a student does an Analysis Report for a company other than the company assigned to him/her, the student will earn a zero (0%) grade for failing to follow clear instructions. The due date for the Analysis Report is [May, 1 st 2015]. Classroom Participation: Students can earn up to a total of [15] points for actively participating in class as follows. (15% of total course grade). A. Attendance: Students can earn up to [7] points for attendance as follows: [ ] points for each class session attended (except Exam days) for up to [ ] class sessions ([ ] points x [ ] class sessions = [ ] points for 100% attendance). A sign-in roll sheet for each class session will be

3 circulated during each class session so students attendance can be accurately recorded, and each student needs to take personal initiative/responsibility to actively ensure that he/she personally signs-in. ([ ]% of total course grade). B. Exercise/Homework: [] Students can earn up to [8] points. Grading Scale Points Grade Grade Points Reporting Grades: A Excellent 4.00 Grade updates will be provided regularly B Good 3.00 throughout the course with appropriate C - Average 2.00 confidentiality. If and as needed a curve may be D - Fair 1.00 available at the discretion of the Instructor. Note: Below 60 F - Failing 0.00 a curve is not promised and is not earned. Class Policies: 1. Regular, punctual attendance is expected/required. Attendance will be recorded and rewarded. 2. Reading the assigned text multiple times and reviewing all assigned questions/answers will be very helpful. 3. If a student is absent and misses Attendance or an Exam, adequate written notice/excuse must be given to the Instructor in a timely manner to avoid receiving a zero grade for Attendance or the missed Exam. 4. Academic integrity: the exams and other graded assignments in this course must reflect the student s own effort without the assistance from others. Any act of academic dishonesty or cheating can be turned over to the university administration for disciplinary actions, and can result in an F for the assignment and possibly for the course. 5. Instructor reserves the right to amend the Syllabus by way of a written Syllabus Amendment if needed. 6. Exams are closed-book, closed-notes. Students may bring one Note Page no larger than 4 x 6 (with no attachments and no material from previous Exams), a calculator and nothing else. 7. Cell phones: If any student is found writing, taking photos or reviewing mobile recidivist way, the student could be expelled from the classroom without prior notice. 8. Computer (LAPTOP/TABLET) with Microsoft Excell. 9. Seating assignments. The Instructor believes students should always have the freedom to sit wherever he/she wants to sit at all times on a daily first-come, first-served basis. 10. During Exams students are not permitted to leave the classroom unless there is a reasonable emergency. Not only formal classes: Throughout the course, the professor will organize two sessions outside the classroom that may include a company visits and/or conferences with experts in the financial area. These activities are developed in order to provide the students with a better understanding of the local financial institutions and a practical perspective of the financial world. Visits will be notice in advance and the normal class schedule may be modified if transportation is needed. (Note: Specific company information is not tested information for Exams). About the Instructor: Professional Experience:

4 - Over 4 years of experience as a Senior Associate at Vista Capital, Private Equity branch of Banco Santander. - Over 3 years of experience as a Senior Analyst/Junior Associate in Investment Baking (Merge & Acquisitions) working for Deloitte and Atlas Capital Close Brothers (Spanish branch of the Japanese Bank Daiwa). - Involved in both national and international transactions (investments, divestments, fairness opinions and fund raising) with aggregate value in excess of 8,500 million euros. Education: - Double Major in Business and Management form Alcalá de Henares University with a special focus on the finance field. One year study program at Central Missouri State University granted by Franklin Institute. - MBA from Escuela de Organización Industrial ( ) (Ministry of Industry Foundation) - Advance Corporate Finance Studies from London School of Economics (2010).

5 Month # hours Topic January 3,0 Syllabus/Intro and Chapter 1: An Overview of Financial Management 3,0 Chapter 2: Financial Markets and Institutions 3,0 Chapter 3: Financial Statements (BS, PL and CF) 3,0 Chapter 4: Analysis of Financial Statements February 1,5 Review for EXAM 1 1,5 Exam 1: Chapters 1, 2, 3, and 4 3,0 Chapter 5 - Review Of Key Concepts (Financial Maths) 3,0 Chapter 6 Annuities (inmediate and due; constants and varying) 3,0 Chapter 7 - Investment Decisions (NPV, IRR) March 1,5 Review for EXAM 2 1,5 EXAM 2: Chapters 5, 6 and 7 3,0 Chapter 8 - Valuation (I): Cash Flow Estimation and Terminal Value 3,0 Chapter 8 - Valuation (II): WACC, M&M and Leverage 1,5 Chapter 8 - Valuation (iii) COMPS and Other Valuation techniques 1,5 Chapter 9 - Capital Increases April 1,5 Review for EXAM 3 1,5 EXAM 3: Chapters 8 and 9 3,0 Lab: Financial Modelling (spreadsheets) and Sensitivity Analysis 3,0 Lab: Financial Modelling (spreadsheets) and Sensitivity Analysis 45,0 Total # hours