Universitat Internacional de Catalunya
Corporate Finance
Other languages of instruction: English, Spanish,
Teaching staff
Introduction
Corporate finance tries to assess the best investment alternatives, obtain economic resources for the organization and allocate them in the best possible way. The purpose is to reduce the implicit risk of certain decisions and achieve optimal development of the company, acquiring more and more value.
This includes topics such as company valuation, dividend policies, structural financing, Project Finance, etc.
The subject of Financial Management II aims to introduce the student to the study and understanding of the liability structure of companies with the aim of creating value for shareholders, as well as for economic agents and the instruments with which companies obtain their financing. , with special focus on business creation. Likewise, investment valuation methods are studied, and finally, company valuation methods are also studied.
Pre-course requirements
Financial Management I
Objectives
This course aims to:
- Show students how to apply today’s most effective corporate finance tools and techniques to their own entrepreneurial ventures.
- Focus on sound financial management practices, showing students how and where to obtain the financial capital necessary to run and grow a venture.
- Explore the most important financial issues that entrepreneurs face, particularly the stages of financing, business cash flow models and strategic positioning of the early-stage company.
Competences/Learning outcomes of the degree programme
- 01 - To be familiar with, understand and apply the methods, techniques and instruments specific to accounting.
- 02 - To be familiar with and know how to interpret and apply current accounting standards.
- 03 - To select and adequately apply applicable accounting alternatives.
- 04 - To understand and know how to use financial terms within a business framework.
- 05 - To understand the functions of corporate finance departments.
- 06 - To know how to apply the main policies for capital structure and asset management.
- 30 - To be familiar with information systems models: relational databases and mis, dss, eis, crm, scm, bi, km, erp, bpms models.
- 31 - To develop the ability to identify and interpret numerical data.
- 32 - To acquire problem solving skills based on quantitative and qualitative information.
- 50 - To acquire the ability to relate concepts, analyse and synthesise.
- 51 - To develop decision making skills.
- 52 - To develop interpersonal skills and the ability to work as part of a team.
- 53 - To acquire the skills necessary to learn autonomously.
- 54 - To be able to express one’s ideas and formulate arguments in a logical and coherent way, both verbally and in writing.
- 59 - To skilfully use software and ICTs.
Learning outcomes of the subject
Students should acquire the knowledge to interact successfully with financial institutions and the regulatory agencies that are central to financing ventures as they grow and, ultimately, look for liquidity for their investors. By using the case study methodology students are engaged and they learn as they examine concepts such as venture capital funds, institutional investors and strategic alliances. This course also provides the student with a thorough understanding of the role of business angels, licensing agreements and exit strategies. To summarise, this course aims to provide the knowledge and skills today’s students need for entrepreneurial success.
Syllabus
1. Introduction and Overview.
2. From the Idea to the Business Plan.
3. Financing a New Venture.
4. Measuring Financial Performance.
5. Evaluating Financial Performance.
6. Financial Planning: Short-Term and Long-Term.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations when Obtaining Venture Financing.
9. Valuing Early-Stage Ventures.
10. Venture Capital Valuation Methods.
11. Professional Venture Capital.
12. Other Financing Alternatives.
13. Security Structures and Determining Enterprise Values.
14. Harvesting the Business Venture Investment.
15. Financially Troubled Ventures: Turnaround Opportunities?
Teaching and learning activities
In person
Lectures
Practical classes
Case analysis
Self-learning activities
Supervised work
Evaluation systems and criteria
In person
Mid-course Examination: 20%. Divided into two parts: theoretical part (40% of mark) and practical part (60% of mark). A 50% score is required on each part to pass the examination.
Final Examination: 75%. Divided into two parts; theoretical part (50% of mark) and practical part (50% of mark). A 50% score is required on each part to pass the examination. The final examination must be passed to obtain an average with other activities.
Evaluation activities during the course, class attendance (no established dates): 10%
Second-sitting examination: A score of 5 out of 7 is required to pass this examination. Divided into two parts: theoretical part (39% of mark) and practical part (61% of mark). A score of 5 out of 7 on each part is required to pass the examination. No average with other activities (evaluation activities during the course and final project) will be calculated.
Final Mark: The resulting mark will be weighted by the attendance percentage, with an allowance of one missed class, even for a resit. Inappropriate behaviour in class will count against the final mark.
Bibliography and resources
Erinciples of Corporate Finance. Brealey, R.A., Myers, S.C. McGraw-Hill Irwin.