801128 - DFINA1 - Financial Management I: Investment



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Coordinating unit: Teaching unit: Academic year: Degree: ECTS credits: 2014 801 - EUNCET - Euncet University Business School 801 - EUNCET - Euncet University Business School BACHELOR'S DEGREE IN BUSINESS ADMINISTRATION AND MANAGEMENT (Syllabus 2009). (Teaching unit Compulsory) 6 Teaching languages: Catalan Teaching staff Coordinator: Dr. JOSEP TORRES PRUNYONOSA Degree competences to which the subject contributes Specific: 1. Applying to the analysis of problems, professional criteria based on the application of advanced techniques and tools. 2. Designing and leading global management projects or projects of functional areas of the company. 3. Producing consulting reports about specific situations of companies and markets. 4. Understanding the functioning of the economic and social institutions as a result and application of formal models about how an economic system works. 5. Using on an habitual basis the Information and Communication Technologies (ICT) in all its professional performance. 6. Identifying, analysing and administering the sources of information and their contents relevant for the company. 7. Getting integrated in any functional area of the company and/or Organization and developing professionally any management task assigned. 8. Assessing from the relevant information registers the situation and predictable evolution of a company. Generical: 9. ORAL AND WRITTEN COMUNICATION_N2. Communicating orally and in written form with other people about learning results, about thinking realization and decision making; participate in debates about topics of the own speciality. Teaching methodology The classes will consist of the teacher's lectures of the most important theoretical aspects related with the syllabus combined with the practical application of proposed exercises. Besides, the first minutes of every class will be devoted to solving students doubts, both from the exercises and the theoretical part. In the second part of the session an exercise related to the topic that's been presented will be solved. For the following session an exercise will be given for homework. Four of these exercises, that will be properly announced, will have to be submitted and will be assessed. Both the exercises that will be done at the end of the session and the ones to be done at home will be corrected at the beginning of the following session. One or more students will have to show publicly the proposed solution. Learning objectives of the subject - Being able to identify the economic and financial imbalance of the company. - Being able to formulate a coherent action plan with the diagnosis to solve the economic and financial imbalances of the 1 / 6

company. - Being able to evaluate and analyse business investment project. - Being able to evaluate companies. Study load Total learning time: 150h Hours large group: 0h 0.00% Hours medium group: 25h 16.67% Hours small group: 25h 16.67% Guided activities: 12h 30m 8.33% Self study: 87h 30m 58.33% 2 / 6

Content Chapter 1. Operational Finance (I): Analysis and Diagnosis Learning time: 31h 15m Practical classes: 10h Guided activities: 7h 30m Self study : 13h 45m 1.1 Introduction 1.2 Business Analysis 1.3 Analysis of the Profit and Loss Account 1.4 Main Concepts in the Balance: WCR (Working Capital Requirements) vs. Working Capital 1.5 Balance Analysis 1.6 Operational Ratios 1.7 Diagnosis Chapter 2. Operational Finance (II): Planning Learning time: 31h 15m Practical classes: 10h Guided activities: 7h 30m Self study : 13h 45m 2.1 Financial Planning 2.2 Action Plan 2.3 Growth with No Additional Funding 2.4 Value Chain 3 / 6

Chapter 3. Investment Projects Analysis (I): Introduction Learning time: 25h Practical classes: 8h Guided activities: 6h Self study : 11h 3.1 What is Investment 3.2 Calculation of an Investment?s Profitability Chapter 4. Investment Projects Analysis (II): Planning and Cash Flows Learning time: 25h Practical classes: 8h Guided activities: 6h Self study : 11h 4.1 Project Cash Flows: The Free Cash-Flow (FCF) vs. the Shareholder Cash Flow 4.2 Stages for Investment Project Analysis: Example of a project 4.3 Profit and Loss Account and Forecast Balance Sheet. Analysis 4.4 Cash-Flows caused by the Investment in Net Asset (WCR and Fixed Assets) 4.5 Cash-Flows produced by the Project Profits. 4 / 6

Chapter 5. Investment Projects Analysis (III): Risk Treatment and other considerations Learning time: 12h 30m Practical classes: 4h Guided activities: 3h Self study : 5h 30m 5.1 Risk or Uncertainties in Investment Projects 5.2 Profitability expected from Investment 5.3 Other Criteria to decide on Investment 5.4 Project Funding 5.5 Inflation Treatment Chapter 6. Company Valuation (I): Introduction Learning time: 12h 30m Practical classes: 4h Guided activities: 3h Self study : 5h 30m 6.1 Company Valuation: Basic Concepts and Uses 6.2 Valuation Method of comparable multiples 5 / 6

Chapter 7. Company Valuation (II): Advanced Methods Learning time: 12h 30m Practical classes: 4h Guided activities: 3h Self study : 5h 30m 7.1 Method of Flows discounts 7.2 Other advanced Methods for Company Valuation Qualification system Final exam (60%) Continuous assessment (40%) The final grade for the course (FQ) is calculated from the following formula: FQ Mark = 60% Final Exam + Continuous assessment mark 40% Minimum mark Final Exam 40 points out of 100 The course is passed with a FQ equal or above 50 out of 100 Generic skills are evaluated from the activities undertaken throughout the course and are considered passed if the student gets a score equal to or higher than 3 on the assessment rubric. Regulations for carrying out activities A minimum mark of 40 out of 100 is required in the final exam to be able to average with the coursework mark, otherwise the final course mark will be a fail Bibliography Basic: ALEMANY, Fina; ALVAREZ, Carolina; ARASA, Maria Josep; CASANOVAS, Montserrat; GARRIGA, Marc; LOPEZ, Josep Maria; MAÑOSA, Agustí; MONLLAU, Teresa; RIPOLL, Enric; SANTANDREU, Pol; TORRES, Josep. Guia Pràctica de Valoració d'empreses. 2ª. Barcelona: Profit (ACCID), 2011. Martínez Abascal, Eduardo. Finanzas per directius. 2a. Madrid: Mc Graw Hill, IESE Business School, 2012. 6 / 6