1. General information
Course:
FINANCIAL MANAGEMENT
Code:
53327
Type:
CORE COURSE
ECTS credits:
6
Degree:
316 - UNDERGRADUATE DEGREE IN ECONOMICS
Academic year:
2022-23
Center:
5 - FACULTY OF ECONOMICS AND BUSINESS
Group(s):
10
17
Year:
4
Duration:
First semester
Main language:
Spanish
Second language:
English
Use of additional languages:
English Friendly:
Y
Web site:
Bilingual:
N
Lecturer:
ANA MARIA ESCRIBANO LOPEZ
- Group(s):
10
Building/Office
Department
Phone number
Email
Office hours
Facultad de CC Económicas y Empresariales/Despacho 3.07
ANÁLISIS ECONÓMICO Y FINANZAS
926052909
ana.escribano@uclm.es
Lecturer:
FRANCISCO JAREÑO CEBRIAN
- Group(s):
10
17
Building/Office
Department
Phone number
Email
Office hours
Facultad de CC Económicas y Empresariales/Despacho 3.07
ANÁLISIS ECONÓMICO Y FINANZAS
926053133
francisco.jareno@uclm.es
2. Pre-Requisites
Basic knowledge about mathematical and financial concepts, such as calculus and numerical series, progressions, logarithms, derivation and basic integration, interest rates and financial transactions, among others.
3. Justification in the curriculum, relation to other subjects and to the profession
Objective of the course
The purpose of this compulsory subject is to provide basic knowledge regarding the three classical problems of corporate finance: investment decisions, optimal financing company and the dividend policy.
First, fundamental concepts of Finance are presented, such as “the time value of money” and the concept of interest as well as key elements for further asset valuation and investment analysis: capitalization and discount process of cash flows. Also financial operations such as loans and mortgages are analysed, as well as treasury bonds and notes.
These concepts allow students to make decisions as financial managers of a company.
Relationship with other subjects
This subject is related with many others, because of concepts such as interest rate, financial transactions, loans and valuation of financial assets (directly interrelated with Economic Policy, Basic Accounting, Principles of Economics, Mathematics, Statistics, Introduction to Econometrics, Economic History, Financial System, etc.).
Relevance for the professional career
The subject of "Financial Management" is an essential part of the background in a degree in Economics as well as the professional career, both in private enterprise, a financial institution or a public entity. The role of this subject is essential because of the relevance of the financial aspects. In addition, training in finance can be complemented with two electives subjects: "Economic Analysis and Finance" and "Mathematical Modelling for Finance".
4. Degree competences achieved in this course
| Course competences | |
|---|---|
| Code | Description |
| E03 | Ability to find economic data and select relevant facts. |
| E04 | Analytical skills to identify and anticipate relevant economic and legal issues and the different alternative solutions. |
| E06 | Application of profesional criteria to the analysis of problems, based on the use of technical tools. |
| G01 | Possession of the skills needed for continuous, self-led, independent learning, which will allow students to develop the learning abilities needed to undertake further study with a high degree of independence. |
| G02 | Ability to understand the ethical responsibility and the code of ethics of professionals working in the field of economics. To know, respect and contribute to the fulfillment of the commitments related to gender equality, non-discrimination, human rights legislation and development cooperation. |
| G03 | Develop oral and written communication skills in order to prepare reports, research projects and business projects and defend them before any commission or group of professionals (specialised or non-specialised) in more than one language, by collecting relevant evidence and interpreting it appropriately so as to reach conclusions. |
| G04 | Ability for the use and development of information and communication technology in the development of professional activity. |
| G05 | Capacity for teamwork, to lead, direct, plan and supervise multidisciplinary and multicultural teams in both national and international environments. |
5. Objectives or Learning Outcomes
| Course learning outcomes | |
|---|---|
| Description | |
| Train the student to listen to and defend arguments orally or in writing | |
| To Know different basic concepts of Finance, focusing on its interpretation to extract relevant information for the company | |
| Train the student to search for information in order to analyze it, interpret is meaning, synthesize it and communicate it to others. | |
| Train the student to it raise the ethical exercise of the profession, becoming aware of social responsibility in decision-making | |
| Additional outcomes | |
| Not established. |
6. Units / Contents
-
Unit 1: THE CONCEPT OF INTEREST AND BASIC MAGNITUDES
-
Unit 1.1: Introduction
-
Unit 1.2: Simple interest
-
Unit 1.3: Compound interest
-
Unit 1.4: Effective interest rate and financial capital
-
Unit 1.5: Sub-periodical effective interest rate and annual percentage rate
-
Unit 1.6: Compounding and discounting
-
-
Unit 2: ANNUITIES AND PERPETUITIES
-
Unit 2.1: Introduction
-
Unit 2.2: Definitions and preliminary concepts
-
Unit 2.3: Valuing annuities and perpetuities
-
-
Unit 3: FINANCIAL TARGET OF THE COMPANY
-
Unit 3.1: Introduction
-
Unit 3.2: Consumption and investment without capital markets
-
Unit 3.3: Consumption and investment without capital markets
-
Unit 3.4: Fisher Separation Theorem
-
Unit 3.5: The concept of wealth
-
-
Unit 4: THE SELECTION CRITERIA FOR INVESTMENTS
-
Unit 4.1: Introduction
-
Unit 4.2: Non-financial criteria for investments: Pay-back and Mean Accounting Return
-
Unit 4.3: Financial criteria for investments: Net Present Value and Internal Rate of Return: a comparison of methods
-
-
Unit 5: THE PROBLEM OF ESTIMATING NET CASH FLOWS
-
Unit 5.1: Estimating Net Cash Flows for Net Present Value
-
Unit 5.2: The effect of inflation for investments
-
Unit 5.3: The effect of taxes and depreciation
-
Unit 5.4: Comparison of investments projects: investments with different initial payment or term
-
Unit 5.5: The problem of replacement decisions
-
-
Unit 6: FINANCIAL LEVERAGE: OPTIMAL DEBT POLICY
-
Unit 6.1: Introduction
-
Unit 6.2: Optimal debt policy or capital structure: Traditional Theory and Modigliani-Miller Propositions (with and without corporate taxes)
-
-
Unit 7: COST OF CAPITAL
-
Unit 7.1: Introduction
-
Unit 7.2: Cost of debt capital: periodical coupon and zero coupon bonds
-
Unit 7.3: Cost of debt capital (II): American, French or straight-line amortization and constant capital loans
-
Unit 7.4: The cost of equity capital: Gordon-Shapiro and CAPM
-
-
Unit 8: DIVIDEND POLICY
-
Unit 8.1: Introduction
-
Unit 8.2: Dividend payment and payment methods
-
Unit 8.3: Traditional theory: the Lintner model
-
Unit 8.4: Modigliani y Miller theory
-
Unit 8.5: Dividend policy and taxes
-
7. Activities, Units/Modules and Methodology
| Training Activity | Methodology | Related Competences (only degrees before RD 822/2021) | ECTS | Hours | As | Com | Description | |
| Class Attendance (theory) [ON-SITE] | Lectures | E04 E06 G01 | 1.33 | 33.25 | N | N | ||
| Class Attendance (practical) [ON-SITE] | Cooperative / Collaborative Learning | E03 E04 E06 G01 G02 G03 G04 G05 | 0.67 | 16.75 | Y | N | ||
| Individual tutoring sessions [ON-SITE] | Combination of methods | E03 G01 G03 | 0.1 | 2.5 | Y | Y | ||
| Progress test [ON-SITE] | Self-study | E03 E04 E06 G01 G03 | 0.1 | 2.5 | Y | N | ||
| Final test [ON-SITE] | Self-study | E03 E04 E06 G01 G03 | 0.1 | 2.5 | Y | Y | ||
| Study and Exam Preparation [OFF-SITE] | Self-study | E03 E04 E06 G01 G02 G05 | 2 | 50 | N | N | ||
| Other off-site activity [OFF-SITE] | Combination of methods | E03 E04 E06 G01 G02 G03 G04 G05 | 1.3 | 32.5 | Y | Y | ||
| Writing of reports or projects [OFF-SITE] | Combination of methods | E03 E04 E06 G01 G02 G03 G04 | 0.4 | 10 | Y | N | ||
| Total: | 6 | 150 | ||||||
| Total credits of in-class work: 2.3 | Total class time hours: 57.5 | |||||||
| Total credits of out of class work: 3.7 | Total hours of out of class work: 92.5 | |||||||
As: Assessable training activity Com: Training activity of compulsory overcoming (It will be essential to overcome both continuous and non-continuous assessment).
8. Evaluation criteria and Grading System
| Evaluation System | Continuous assessment | Non-continuous evaluation * | Description |
| Assessment of active participation | 10.00% | 10.00% | |
| Self Evaluation and Co-evaluation | 20.00% | 20.00% | |
| Portfolio assessment | 5.00% | 5.00% | |
| Progress Tests | 5.00% | 0.00% | |
| Final test | 60.00% | 65.00% | |
| Total: | 100.00% | 100.00% |
According to art. 4 of the UCLM Student Evaluation Regulations, it must be provided to students who cannot regularly attend face-to-face training activities the passing of the subject, having the right (art. 12.2) to be globally graded, in 2 annual calls per subject , an ordinary and an extraordinary one (evaluating 100% of the competences).
Evaluation criteria for the final exam:
-
Continuous assessment:The course follows an evaluation system based on the assessment of various training activities and an exam. The student is required to obtain a 4 (out of 10) in the final evaluation test in order to average the grade obtained in the rest of the proposed training activities. Those students who, even having done evaluable activities, wish to be evaluated with the non-continuous evaluation criteria must communicate it to the professor before the end of the class period.
Regarding the evaluation in case of illness or other special circumstances (extenuating rules) see article 7 of the Student Evaluation Regulations of the University of Castilla-La Mancha.
Assessment criteria Assessment Compulsory
Class attendance and participation 10% Yes
Evaluation and co-evaluation activities 20% Yes
Learning portfolio 5% Yes
Progress test 5% Yes
Final exam 60% Yes -
Non-continuous evaluation:The evaluation will be carried out with a final test that will include the specific tests that are considered necessary to evaluate all the competences of the subject.
Regarding the evaluation in case of illness or other special circumstances (extenuating rules) see article 7 of the Student Evaluation Regulations of the University of Castilla-La Mancha.
Assessment criteria Assessment Compulsory
Class attendance and participation 10% Yes
Evaluation and co-evaluation activities 20% Yes
Learning portfolio 5% Yes
Final exam 65% Yes
Specifications for the resit/retake exam:
Assessment criteria Assessment Compulsory
Class attendance and participation 10% Yes
Evaluation and co-evaluation activities 20% Yes
Learning portfolio 5% Yes
Final exam 65% Yes
Class attendance and participation 10% Yes
Evaluation and co-evaluation activities 20% Yes
Learning portfolio 5% Yes
Final exam 65% Yes
Specifications for the second resit / retake exam:
Final exam 100%
The evaluation will be based on a single written test and a minimum score of 5 out of 10 is required to pass the course.
The evaluation will be based on a single written test and a minimum score of 5 out of 10 is required to pass the course.
9. Assignments, course calendar and important dates
| Not related to the syllabus/contents | |
|---|---|
| Hours | hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 3.25 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 1.75 |
| Individual tutoring sessions [PRESENCIAL][Combination of methods] | 2.5 |
| Final test [PRESENCIAL][Self-study] | 2.5 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 34 |
| Writing of reports or projects [AUTÓNOMA][Combination of methods] | 10 |
| Unit 1 (de 8): THE CONCEPT OF INTEREST AND BASIC MAGNITUDES | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 4 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 2 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 3.5 |
| Teaching period: WEEKS 1 AND 2 | |
| Unit 2 (de 8): ANNUITIES AND PERPETUITIES | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 4 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 2 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 8 |
| Teaching period: WEEKS 3 AND 4 | |
| Comment: MANDATORY PRACTICE 1 (IN GROUPS) | |
| Unit 3 (de 8): FINANCIAL TARGET OF THE COMPANY | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 4 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 2 |
| Progress test [PRESENCIAL][Self-study] | 1 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 4.5 |
| Teaching period: WEEKS 5 AND 6 | |
| Unit 4 (de 8): THE SELECTION CRITERIA FOR INVESTMENTS | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 6 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 3 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 5 |
| Teaching period: WEEKS 7, 8 AND 9 | |
| Comment: REVIEW OF THE LEARNING PORTFOLIO 1 | |
| Unit 5 (de 8): THE PROBLEM OF ESTIMATING NET CASH FLOWS | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 4 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 2 |
| Progress test [PRESENCIAL][Self-study] | 1.5 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 4 |
| Teaching period: WEEKS 10 AND 11 | |
| Comment: MANDATORY PRACTICE 2 (IN GROUPS) + PROGRESS TEST | |
| Unit 6 (de 8): FINANCIAL LEVERAGE: OPTIMAL DEBT POLICY | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 2 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 1 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | .5 |
| Teaching period: WEEK 12 | |
| Comment: NON-MANDATORY PRACTICE (PAPER IN THE DIGITAL NEWSPAPER "ECONOMÍA DIGITAL") | |
| Unit 7 (de 8): COST OF CAPITAL | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 4 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 2 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Other off-site activity [AUTÓNOMA][Combination of methods] | 7 |
| Teaching period: WEEKS 13 AND 14 | |
| Comment: MANDATORY PRACTICE 3 (INDIVIDUAL) | |
| Unit 8 (de 8): DIVIDEND POLICY | |
|---|---|
| Activities | Hours |
| Class Attendance (theory) [PRESENCIAL][Lectures] | 2 |
| Class Attendance (practical) [PRESENCIAL][Cooperative / Collaborative Learning] | 1 |
| Study and Exam Preparation [AUTÓNOMA][Self-study] | 2 |
| Teaching period: WEEKS 15 | |
| Comment: REVIEW OF THE LEARNING PORTFOLIO 2 + MANDATORY PRACTICE 4 (IN GROUPS) | |
| Global activity | |
|---|---|
| Activities | hours |
| General comments about the planning: | Indicative planning. |
10. Bibliography and Sources
| Author(s) | Title | Book/Journal | Citv | Publishing house | ISBN | Year | Description | Link | Catálogo biblioteca |
|---|---|---|---|---|---|---|---|---|---|
| APARICIO, A., GALLEGO, R., IBARRA, J.A. y MONROBEL, J.R. | Cálculo financiero. Teoría y ejercicios | Madrid | Paraninfo | 9788428340342 | 2017 | ||||
| BREALEY, R.A., MYERS, S.C. y ALLEN, F. | Principios de Finanzas Corporativas | Madrid | McGraw-Hill | 978-970-10-7283-7 | 2010 |
|
|||
| BREALEY, R.A., MYERS, S.C. y MARCUS, A.J. | Fundamentos de Finanzas Corporativas | Madrid | McGraw-Hill | 978-84-481-5661-9 | 2010 | ||||
| BREALEY, R.A., MYERS, S.C. y MARCUS, A.J. | Principios de dirección financiera | Madrid | McGraw-Hill | 84-481-0608-3 | 1996 | ||||
| BREALEY, R.A., MYERS, S.C., MARCUS, A.J. y MATEOS, P. | Finanzas Corporativas | Madrid | McGraw-Hill | 978-84-481-7208-4 | 2010 |
|
|||
| COPELAND, T. E.; WESTON, J. F. y SHASTRI, K. | Financial Theory and Corporate Policy | USA | Pearson/Addison-Wesley (International Edition) | 978-0-321-22353-1 | 2005 |
|
|||
| FERNÁNDEZ ÁLVAREZ, A.I. | Introducción a las finanzas | Madrid | Civitas | 84-470-0362-0 | 1994 |
|
|||
| GRINBLATT, M. y TITMAN, S. | Mercados financieros y estrategia empresarial | McGraw-Hill Interamericana | 84-481-3816-3 | 2003 |
|
||||
| HAUGHEN, R. A. y LAKONISHOK, J. | El increíble efecto enero | Barcelona | Ariel | 9788434414310 | 1998 | ||||
| JAREÑO, F. | Ejercicios de Dirección Financiera | Albacete | FCEE | 2017 | |||||
| KALAY, A. y LEASE, R.C. | Política de dividendos y sus efectos sobre el valor de la empresa | Barcelona | Gestión 2000 | 9788480885539 | 2001 | ||||
| LÓPEZ, F. Y GARCÍA, P. | Finanzas en el mundo corporativo. Un enfoque práctico | Madrid | McGraw-Hill | 9788448198282 | 2005 | ||||
| MARTÍN, M. Y MARTÍNEZ, P. | Casos prácticos de dirección financiera | Madrid | Pirámide | 978-84-368-2072-0 | 2006 |
|
|||
| MINER, J. | Curso de Matemática Financiera | Madrid | McGraw Hill | 9788448138172 | 2003 | ||||
| MINER, J. | Matemática Financiera | Madrid | McGraw Hill | 8448198298 | 2004 | ||||
| NAVARRO ARRIBAS, E. | Matemáticas de las Operaciones Financieras | Madrid | Pirámide | 978-84-368-4050-6 | 2019 | https://www.edicionespiramide.es/libro.php?id=4297199 | |||
| NAVARRO, E. y NAVE, J.M. | Fundamentos de Matemáticas Financieras | Barcelona | Antoni Bosch | 978-84-95348-01-2 | 2001 | ||||
| PISÓN FERNÁNDEZ, I. | Dirección y gestión financiera de la empresa | Madrid | Pirámide | 84-368-1548-3 | 2001 |
|
|||
| ROSS, S. A., WESTERFIELD, R. W. y JAFFE, J. F. | Finanzas Corporativas | Madrid | McGraw-Hill | 9789701072806 | 2009 | ||||
| SUAREZ SUAREZ, A.S. | Decisiones óptimas de inversión y financiación en la empresa | Madrid | Pirámide | 978-84-368-1899-4 | 2008 |
|
|||
| TERMES, R. | Inversión y Coste de Capital. Manual de Finanzas | Madrid | McGraw-Hill | 978-84-481-1204-2 | 1998 | ||||
| VAN HORNE, J.C. | Administración financiera | Mexico | Prentice-Hall | 968-880-037-6 | 1999 |
|
|||
| VAN HORNE, J.C. y WACHOWICZ, J. M. (JR.) | Fundamentos de Administración Financiera | Mexico | Prentice-Hall | 970-26-0238-6 | 2002 |
|
|||
| WESTON, E.F. y BRIGHAM, E.F. | Fundamentos de administración financiera | México | McGraw-Hill | 970-10-351-9 | 1994 |
|