Description
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 and integrated into the financial process.
Type Subject
Tercer - Obligatoria
Semester
Second
Course
2
Credits
3.00
Previous Knowledge
Objectives

OBJECTIVES
The student will be able to apply all the concepts and tools already learned in finance and accounting to analyze and discuss issues such as current asset management, sources of short and long-term financing and international financial management.

Contents

Agenda Sessions and Course Syllabus

Week 1
Chapters 1 - The Goals and Functions of Financial Management

Week 2
Chapter 2 - Review of Accounting

Week 3
Chapter 5 - Operating and Financial Leverage

Week 4
Chapter 6 - Working Capital and the Financing Decision

Week 5
Chapter 7 - Current Asset Management

Week 6
Review for Midterm Exam

Week 7
Midterm Exam

Week 8
Chapter 8 - Sources of Short-Term Financing

Week 9
Chapter 16 - Long-Term Debt and Lease Financing

Week 10
Chapter 17 - Common and Preferred Stock Financing

Week 11
Chapter 18 - Dividend Policy and Retained Earnings

Week 12
Chapter 20 - External Growth through Mergers

Week 13
Chapter 21 - International Financial Management

Week 14
Review for Final Exam

Week 15
Final Exam

Methodology

Lectures will follow closely the structure and content set out in the main textbook `Corporate Finance Foundations´, by Hirt, Block and Danielsen, Global Edition, McGraw-Hill 14th Edition.
We will aim to cover the material in 11 chapters of the book, approximately one chapter per week. Regular quizzes will be held in order to test students´ knowledge of the material covered in the lectures.

Evaluation

REQUIREMENTS, EXPECTATIONS, AND ASSESSMENT
- Students are expected to do class practices, complete all assignments, tests and exams on the dates assigned. Class participation includes contributing in solving class problems and correcting the previous session´s home assignments as well as showing at all times a positive interactive attitude during class. This is reflected in the course grading. Students showing disruptive and disrespectful behavior will be asked to leave the classroom and it will count as an absence for the session.

- Assignments include exercises and problems which are assigned from the textbook. All assignments must be completed on a daily basis in order to be able to discuss whichever doubts the students may encounter in the following class session. If a student is called to participate in solving homework problems and he/she cannot provide an answer, it will be assumed by the professor that the assignment was not completed that day being this reflected in the assignment grade. If a student is absent for any session, he/she must submit the assignment due by email on that same day in order not to be penalized. Failure to do so will result in a negative grade.

- The use of laptops is not allowed during class.

 Cell-phones. Cell-phones are off limits during class: no calls -no text messaging… Students must turn them off. No cell-phones are allowed on the table to check the time. Professor will inform students when it is the time to finish the class.
If a student has an emergency situation that requires she/he requires to be contacted quickly during class time, he/she must let his/her professor know at the beginning of class and an exception may be made if the professor considers so.
- Be punctual. Late arrivals are disruptive to both lectures and class discussion and show disrespect to those who are on time. Once class starts (five minutes after class time specified), the door will be closed. This will show in the attendance list as an absence.

- There will be no excuse for not bringing the textbook to every class session, as it will be regularly used for doing exercises and for discussion purposes.
- Problem sets are to be done individually, meaning the work you turn in must be your own, as opposed to copied from another (and yes, we can certainly tell if it has been copied). This does not mean you have to do the assignment in isolation. We expect that you will need to consult each other in order to comprehend, or better understand, the material. Seeking and giving such assistance is encouraged.

- Review sessions may be conducted during the course and will be scheduled as needed.

- Retake policy: Students who fail the course (grade <5) can sit a retake exam which retests all the material covered in the course. The students´ course grade will then be the weighted average of the retake grade (55%) and the student´s original grade for attendance, participation, class work and assignments (45%).

- Revision Date: Once the semester is over and final grades posted, there will be a time slot of a day devoted to revision.

EVALUATION

The Course grade will be based on the following:
Attendance 10%
Participation, class work and assignments 35%
Mid-term exam 25%
Final examination 30%

Evaluation Criteria

ATTENDANCE POLICY

Attendance will be registered with sign-in sheets that are checked carefully by the professor. Any incidences of students signing each other in will be dealt with as cheating and the students implicated will fail the subject.
For a course meeting twice per week for one semester attendance counts for 10%, a maximum of 1 point in the final grade. Students are permitted 4 absences without penalty (or need for medical or other justification). The 5th absence results in the loss of 0.25 points, the 6th absence in a further 0.25 points, the 7th absence in a further 0.25 points, and with the 8th absence the student receives a 0 for attendance.
If the student continues to be absent from class, the professor will contact the programme´s direction team.

Basic Bibliography

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

Additional Material