Guía Docente 2019-20
DIRECCIÓN FINANCIERA II

BASIC DETAILS:

Subject: DIRECCIÓN FINANCIERA II
Id.: 30454
Programme: GRADUADO EN ADMINISTRACIÓN Y DIRECCIÓN DE EMPRESAS (BOE 26/11/2010)
Module: FINANZAS
Subject type: OBLIGATORIA
Year: 3 Teaching period: Segundo Cuatrimestre
Credits: 6 Total hours: 150
Classroom activities: 60 Individual study: 90
Main teaching language: Inglés Secondary teaching language: Inglés
Lecturer: Email:

PRESENTATION:

This course is aimed at student are interested in understanding asset pricing and corporate finance.

It provides a theoretical framework used to address issues in project appraisal and financing, the pricing of risk, securities valuation, market efficiency, capital structure, and mergers and acquisitions. It provides students with the tools required for further studies in financial intermediation and investments.

This subject bridges the gap between financial theory and practice through the indepth examination of an organisation´s three key financial decisions: the investment, the financing and the payout.. This contents are supported by appropiate quantitative models and applied through comtemporary case studies focusing on boardroom decisions.

PROFESSIONAL COMPETENCES ACQUIRED IN THE SUBJECT:

General programme competences G01 Ability to analyse and summarise information from several sources.
G02 Creative and efficient resolution of problems that arise in day-to-day, in order to ensure the highest levels of quality of professional work.
G03 Ability to organise and plan the work in the context of continuous improvement
G04 Use of information and communication technologies
G05 Ability to work effectively in interdisciplinary teams, integrating and participating in scientific and professional teamwork, contributing ideas and respecting and valuing the diversity of views of other team members.
G06 Ability to incorporate ethical principles into the professional culture, giving priority to ethical commitment to customers and society.
G08 Oral and written communication in Spanish.
G10 Ability to apply the acquired knowledge, adapting it to the needs and special features of each situation and person.
G11 Ability to come up with new ideas (creativity).
G13 Ability to develop learning strategies throughout life to be able to acquire new knowledge, by developing their own academic and professional path.
G15 Ability to establish and meet the most appropriate quality criteria and apply methodologies and work strategies geared towards continuous improvement.
G16 Ability to assimilate concepts of a social and humanistic nature into a comprehensive university education to enable the development of ethical values such as solidarity, multiculturalism, equality, commitment, respect, diversity, integrity, etc.
Specific programme competences E01 Understand the specific aspects of the operation, management and control of the different functional areas of the company.
E04 Ability to identify related variables and understand their impact on business organisations.
E09 Appreciate how the domestic and international financial markets operate.
E10 Understand financial operations taking place in business environments, designing and analysing investment and financing strategies.
E11 Learn the techniques and methods of quantitative nature applicable to the diagnosis, analysis and business exploration (mathematics, statistics and econometrics) being able to use the most appropriate tool in each situation.
E14 Understand the principles of business ethics and be able to design scenarios in which these principles can be put into business practice.
Learning outcomes R1 Understand the key elements in managing portfolios
R2 Learn the basics of ETTI to manage interest rate risk
R3 Manage the various risks assumed in the investment

PRE-REQUISITES:

It isn´t required any prerequisite to take this subject, but it is highly recommended to have completed the course "Corporate Finance I" as well as the subject  "Financial Mathematics".

SUBJECT PROGRAMME:

Observations:


The planning of the subject may be modified by unforseen reasons (such as group performance, availability of resources, changes in the academic calendar, etc) and therefore it should not be considered as definitive and closed.

Subject contents:

1 - INTRODUCTION TO CORPORATE FINANCE
    1.1 - Corporate investment and financing decisions
    1.2 - Components of financial system
    1.3 - Classification of financial markets
    1.4 - Efficient-market hypothesis (EMH)
2 - FINANTIAL ASSETS
    2.1 - Bond Valuation
    2.2 - The value of common stocks
    2.3 - Introduction to derivatives
3 - RISK IN FINANCIAL MARKETS
    3.1 - Managing Risk
    3.2 - Measurement of volatility in financial time series
4 - RISK MANAGEMENT IN MONETARY MARKETS
    4.1 - Fixed-income Valuation
    4.2 - Yield Curve
    4.3 - Portfolio Theory
5 - RISK MANAGEMENT IN ASSET PORTFOLIOS
    5.1 - Risk and the cost of capital. CAPM Model
    5.2 - Introduction to Value at Risk (VaR)

Subject planning could be modified due unforeseen circumstances (group performance, availability of resources, changes to academic calendar etc.) and should not, therefore, be considered to be definitive.


TEACHING AND LEARNING METHODOLOGIES AND ACTIVITIES:

Teaching and learning methodologies and activities applied:

The teaching methodology of the subject will consist of:
 
-Classroom classes, where the theoretical content will be applied.
-Realization of exercises in class, where the doubts that may arise will be solved.
-Realization of compulsory exercises in group with cooperative learning method. Each group prepare a lesson of the programme and share the knowledge they have and help other during the lesson.
-Final writting test that will determine the degree of comprehension of the subject as a whole .
-Reading about current economic news, analysis and economic debate related to the subject.
-Individual tutorias to follow the student.

Realization of works in the activities developed  in the Business Lab (BL) where the acquired knowledge will be shared and the individual skills will be put into practice in a group activity. For the BL the evaluation rubrics will be facilitated to students through the PDU. The main objective of the BL is to present to the students, from the first day, the business reality, giving them the opportunity to work in the identification of problems, creation of solutions and the development of contingency plans to the real problems of business operation. These activities will have the purpose of devoloping the social and technical skills of the student, as well as their performance, and providing then with a competitive advantage when facing the labor market. The activities will be very varied, from the resolution of cases to the visit to companies,  for attendance seminars and in any case, always helping to provide solutions to real business problems. Students will have to attend a series of activities planned in advance that will be obligatory for all the students in all the activities and later the monitoring and the evaluation of the results will be done by the tutor of these, professor and representative of the company so that they contribute solutions or propose plans. The corresponding grade is 10% of the evaluated subject. The non-attendance of the activities will get a penalty which will be determined by the tutor and/ or teacher and will be reflected in the final grade of the subject.

 

Student work load:

Teaching mode Teaching methods Estimated hours
Classroom activities
Master classes 36
Other theory activities 8
Practical exercises 4
Practical work, exercises, problem-solving etc. 4
Debates 4
Coursework presentations 2
Films, videos, documentaries etc. 2
Individual study
Tutorials 8
Individual study 60
Individual coursework preparation 10
Group cousework preparation 10
Other individual study activities 2
Total hours: 150

ASSESSMENT SCHEME:

Calculation of final mark:

Written tests: 15 %
Group coursework: 20 %
Final exam: 55 %
Group coursework (Business Lab): 10 %
TOTAL 100 %

*Las observaciones específicas sobre el sistema de evaluación serán comunicadas por escrito a los alumnos al inicio de la materia.

BIBLIOGRAPHY AND DOCUMENTATION:

Basic bibliography:

NAVARRO, Eliseo; NAVE, Juan M. Fundamentos de matemáticas financieras. Barcelona: Antoni Bosch, 2011
GOME-BEZARES, Fernando. Gestión de carteras. Bilbao: Desclee de Broumer S.A, 2016
LÓPEZ, Francisco; GARCÍA, Pablo. Bolsa, mercados y técnicas de inversión 2 ED. Madrid : McGraw-Hill, 2011. (Recurso online disponible a través de INGebook)
GREENE, William. Análisis econométrico (3a edición). Prentince Hall, 2008
BREALEY, Richard A.; MYERS, Franklin Stewart C.; ALLEN Franklin. Principios de finanzas corporativas. McGraw-Hill, 2010
BRUDNEY, Victor; CHIRELSTEIN, Marvin A. Cases and materials on corporate finance. Mineola, N.Y. Foundation Press. 1972.
VERNIMMEN, Pierre; QUIRY, Pascal. Corporate finance: theory and practice. Chichester John Wiley and Sons. 2015.
SNOPEK, Lukasz. Complete Guide to Portfolio Construction and Management. Wiley,2012

Recommended bibliography:

BOLVIKEN, Erik. Computation and modelling in Insurance and Finance. Institute and Faculty of Actuaries. Cambridge, 2014
URIEL, Ezequiel. Introducción al análisis de series temporales. Editorial AC, 2005
HITCHNER, James. Financial valuation : applications and models. Wiley, 2011
MAKRIDAKIS, Spyros. Forecasting: Methods and Applications.Wiley, 1998.
HANKE, John. Business Forecasting. Pearson, 2008.
SOLLIS, Robert. Empirical Finance for Finance and Banking. Wiley,2012
DURBÁN OLIVA, Salvador: Dirección Financiera. Madrid: McGraw Hill,2008
HULL, John C. Risk Management and Financial Institutions 3ª ed. Wiley, 2012
MILLER, Michael B. Mathematics&Statistics for Financial Risk Management 2ª ed. Wiley, 2014
ELTON, Edwin J., GRUBER, Martin J., BROWN, Stephen J., GOETZMANN, William N. Modern Portfolio Theory and Investment Analysis. Wiley, 2014
MILLS, Terence C., MARKELLOS, Raphael N. The Econometric Modelling of Financial Time Series. Cambridge, 2008
MISHKIN, Frederic S., EAKINS, Stanley G. Financial Markets and Institutions. Pearson, 2012

Recommended websites:

Eurostat (statistical office of the European Union) epp.eurostat.ec.europa.eu
Yahoo Finance finance.yahoo.com
Google Finance finance.google.com
Fondo Monetario Internacional www.imf.org/external/index.htm
World Trade Organization www.wto.org/index.htm
Base de datos del Banco Mundial data.worldbank.org
Asociación Española de Contabilidad y Administración de Empresas www.aeca.es
Banco de España www.bde.es
Diario Expansión www.expansion.com
Banco Central Europeo www.ecb.europa.eu/ecb/html/index.es.html
Comisión Nacional del Marcado de Valores www.cnmv.es
Financial Times www.ft.com
Reserva Federal www.federalreserve.gov
Instituto Nacional de Estadistica www.ine.es
Trading Economics tradingeconomics.com
Fundación Española de Estudios Económicos http://www.fedea.net/
The Economist theeconomist.com
Riskmetrics www.msci.com


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