This course is an introduction to business finance fundamentals and to financial decision making.
The course presents students with foundations of financial management, present and future values, bonds and common stock valuation, and financial statements analysis. The course will combine theoretical problem-solving and individual business cases.
From examining appropriate data to develop a reliable financial forecast the course will provide a sound understanding of the techniques of budgeting and making a business plan.
At the end of this academic term, students will have completed business finance training.
Titular Professors
Professors
No prior knowledge is presupposed; The fundamental concepts are introduced from the beginning of the course.
They will be instructed and assisted in:
1) Understanding the importance of time value of money.
2) Understanding the most fundamental concepts of discounted cash flow and application to evaluate projects, and funding securities as equity and debt.
3) Learning how to compare a series of future cash flows and evaluate recommended choices for investment in consideration of risks and potential returns.
4) Developing methodologies to calculate return estimates and intrinsic value.
5) Developing methodologies to elaborate business plan of individual business case.
Topic 1: Understanding financial management.
Topic 2: Evaluation of financial assets.
Topic 3: The time-value of money.
Topic 4: Meaning and measurements of risk and (potential) return.
Topic 5: Management of risk vs. return trade-off.
Topic 6: Understanding financial statements.
Topic 7: Interpretation and use of financial statements.
Topic 8: Use of financials for evaluation and projection.
Topic 9: Interest rates and debt fundraising.
Topic 10: Interest rates and equity fundraising.
Topic 11: Identifying interest rates, WACC.
The weekly class time will typically consist of a two-hour lecture and two sessions dedicated to solving past assignments and preparing upcoming problems. Lectures will entail increasing involvements from students, culminating with the individual case presentation to the class, on session 14.
The course grade will be based on the following point breakdown:• (A) Attendance and active class participation: 10%
• (B) Continuous assessment: 40% Quizzes.
• (C) Case studies: 20%. It is the student's responsibility to submit the assignment individually in their folder.
• (D)Final exam: 30%. Students must achieve a minimum score of 4/10 for the final grade to be calculated.
FINAL GRADE: 10% (A) + 40% (B) + 20% (C) + 30% (D)
Retake policy: There are no RETAKE EXAMS.
REQUIREMENTS AND EXPECTATIONS
In addition, instructors expect the following from students:
Punctuality
It is important to arrive on time to class, as tardiness generates distractions and disrupts the learning environment. If a student arrives more than 10 minutes late, it will be recorded as an absence and the student will not be allowed to enter until the break. It is also mandatory to return from the break at the indicated time; otherwise, the same rule will apply.
Participation
Participation means being actively involved, not just being physically present. The quality of contributions and the ability to connect with classmates’ comments will be evaluated. Students who do not participate regularly will receive a lower grade in this component. Participation carries an important weight in the final grade and is entirely under the student’s control.
Class Preparation
Students are expected to attend class having completed the readings, exercises, and assignments.Any inappropriate behaviour or disrespect towards classmates or instructors will result in removal from the classroom, and the session will be recorded as an absence.
Mobile Phone Policy
The use of mobile phones is not allowed during class hours. During sessions, making calls, sending text messages, using WhatsApp or any other mobile-related actions is prohibited. All devices must remain turned off and stored in bags, out of sight. In case of non-compliance, the instructor will ask the student to leave the classroom after a first warning. In addition, their name will be reported to the Business Undergraduate Management Team for disciplinary action.
Being Prepared for Each Class
Students are expected to attend class with readings, exercises, activities, and tasks prepared in advance. Students come to class with the intention of learning and working. Those who do not behave properly or who show disrespect towards classmates or the instructor will be asked to leave the classroom, and this will count as an absence for the session.
Meeting Deadlines
It is the student’s responsibility to know the key dates related to the course: continuous assessment deadlines, forum participation, case study presentations, thematic forum participation, exams, etc.
Late submissions of continuous assessment exercises will not be accepted, since after the deadline these exercises are corrected and discussed in class; therefore, submitting them later has no purpose. A continuous assessment exercise not submitted will receive a grade of 0.
A late submission of a practical case will be penalised with a reduction of the corresponding grade→ A presentation submitted late will have a maximum grade of 5 out of 10.
Plagiarism
It is a violation of school policy for students to represent work they did not do as their own.
Any submission with plagiarism of 30% or more indicated in URKUND will have a zero.
Plagiarism regulation: https://www.salleurl.edu/en/copies-regulation
USING AI TOOLS
The use of AI tools is totally prohibited in this course.
Level: Level 3
Designation:Level 3: AI for edition
Use of AI: It is possible to employ AI per improve the writing, the clarity, grammar, punctuation or formulation, but not to create new material.
Requirements for the student: Develop the activity completely autonomously, demonstrating their own knowledge and skills, without the minimum support of AI tools.
Attendance: Students are allowed to be absent for up to 25% of class sessions without penalty. Absences between 25 to 40% will result in the loss of 1 point and the student will receive a 0 for attendance/participation.
Note: After 40% absences constitute a serious situation, and the student is in danger of failing the
course. If you arrive 10 minutes late, you´ll be marked as absent. Will be unable to enter class until break time.
Participation: It will be based on your contribution to the class by offering ideas, asking questions, helping others during class assignments, being sensitive to the learning needs of others, and working toward group goals. You will be assessed on the Quality of your comments and your ability to connect with and build upon comments made by your colleagues.
Mobile phone policy.
You cannot use your mobile phone during class time. Mobile phones are off limits during class: no calls, no text messaging, no WhatsApp etc. All phones must be turned off and away in bags and out of sight. Failure to do this will result in the professor asking you to leave the room after an initial warning.
This will also result in your name being reported to the direction of business degrees for disciplinary action.
ATTENDANCE POLICY
- Attendance will be recorded at the beginning of each session.
- Justified absences no longer exist; students may miss up to 5 sessions for any reason.
- Starting with the sixth absence, the final grade will be reduced by 5%, and the same reduction will apply for each additional absence.
- If absences continue, the instructor will contact the academic tutor and programme management.
ONLINE ATTENDANCE POLICY
Students will only be allowed to attend online in the following cases:
- Temporary bureaucratic or visa-related reasons.
- Health issues that prevent attendance on campus for at least 5 school days.
If they wish to request permission for online attendance, the student must send a request to their tutor.
Foundations of Finance, Keown, Martin, Petty Pearson, 9th edition, ISBN 978-1292155135. Recommended reading: Financial times, Wall street journal, Bloomberg, The Economist.
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