Degree in Management of Business and Technology La Salle Campus Barcelona

Degree in Management of Business and Technology

Internationality, technology, innovation, creativity, entrepreneurship, values, and both people and team management are the keys to define this degree. Includes international stages.

Financial Management

AD029 is the continuation to Accounting Principles I (AD003) and II (AD009). This course focuses on the interaction of finance, economics and accounting as financial managers need to understand the relationship between these fields. Economics provides the broad picture of the economic environment in which corporations must continually make decisions. A financial manager must understand the interrelationships between the various sectors of the economy. Economic variables, such as gross domestic product, industrial production, disposable income unemployment, inflation, interest rates, and taxes, must fit into the financial manager's decision model and be applied correctly. All these terms will be presented, discussed, and integrated into the financial process. At the end of this academic term, students will have completed part of their basic accounting training. They will be instructed and assisted in: a) Understanding the role and importance of financial management in the business environment. b) Through the analysis of financial statements, determining the best financial policies to adopt to obtain the best economic results for the company. c) Learning to use the tools already learned in previous courses together with the ones now presented to implement them in the decision process. d) Learning the different techniques to manage the company's working capital and current assets. e) Learning to choose which kind of financing would be more profitable for the business. f) Studying how a company's dividend policy can affect their performance in the market. g) Learning why companies merge. h) Understanding the basic principles of international financial management.
Type Subject
Tercer - Obligatoria

Titular Professors

Previous Knowledge

On the completion of this course students will be able to:
- Make decisions on which methods of financing should be used in the business.
- Manage working capital and current assets to always incur in the minimum cost.
- Know how to determine the optimum volume of production given a specific circumstance.
- Determine the adequate degree of financial and operating leverage for the business.
- Have a full understanding of the implications and consciences of company mergers and acquisitions and the intricacies behind them.


Chapters 1 - The Goals and Functions of Financial Management
Chapter 5 - Operating and Financial Leverage
Chapter 6 - Working Capital and the Financing Decision
Chapter 7 - Current Asset Management
Chapter 8 - Sources of Short-Term Financing
Chapter 16 - Long-Term Debt and Lease Financing
Chapter 17 - Common and Preferred Stock Financing
Chapter 18 - Dividend Policy and Retained Earnings
Chapter 20 - External Growth Through Mergers


The class sessions will consist of lecture time and solving problems. The first session will be devoted to solving the homework cases assigned in the previous session and clearing doubts. The second session will be lecture time and solving cases based on the lecture material thus preparing the students for the homework. Lectures will follow closely the structure and content set out in the required textbook.


The course grade will be based on the following point breakdown:
- Attendance and participation/classwork (including preparation of homework) (A): 25%. Individual work.
- Group project presentation (B): 20%. Teamwork.
- Midterm exam (C): cases and theory on concepts studied to date: 25%. Individual work.
- Final exam (D): cases (concepts from midterm to final) and multiple-choice questions. 30%. Individual work.
FINAL NOTE IN 1ST CALL: 25% (A) + 20% (B) + 25% (C) + 30% (D)

Midterm makeup exam: A student who has failed the midterm will be able to take a one-hour open-book midterm makeup exam on a day during final exams week. The grade obtained will be capped at 7 and it will replace and substitute the grade previously earned in the failed midterm.

Retake Policy: If the student fails the course, there will be a retake exam which consists of a written open-book exam to be conducted on the dates specified by Administration and which will be based on the entire course material. The final grade for the course will be 60% of the retake grade (E), 20% of the grade received for attendance and participation (A) and 20% of the group project grade (B).
FINAL NOTE IN RETAKE: 20% (A) + 20% (B) + 60% (E)

Evaluation Criteria
Basic Bibliography

"Corporate Finance Foundations" by Hirt, Block and Danielsen, Global Edition, McGraw-Hill 14th Edition. ISBN 978-0-07- 122064-4.

Additional Material