Universidad de Jaén

PART I: CALCULATION OF COST OF FINANCING. TAX EFFECT.

 Lesson 1: Liabilities valuation.

 1.1 Introduction

1.2 Share capital

1.3 Reserves

1.4 Capital Government Grant.

1.5 Bonds and obligations.

1.6 Leasing.

1.7 Loans.

1.8 Discount (updating) rate.

 

PART II: LONG AND MEDIUM-TERM DECISION-MAKING PROCESS. INVESTMENTS.

 Lesson 2: Productive assets valuation.

 2.1 Introduction.

2.2 Initial outlay.

2.3 Operating activity net cash flows.

2.4 Residual value.

 Lesson 3: Investment valuation. Incrementality.

 3.1 Introduction.

3.2 Substitution investments.

3.3 Renovation investments.

3.4 Use of an old asset investments.

Lesson 4: Financial feasibility in investment decision-making process.

4.1 Introduction.

4.2 Calculation of financial feasibility.

 

PART III: CONSIDERATION OF RISK IN FINANCIAL DECISION-MAKING PROCESS.

Lesson 5: Consideration of economic risk in financial decision-making process

5.1 Introduction.

5.2 Estimation methods.

5.3 Statistical methods.

5.4 Decision-making under uncertainty.

 

PART IV: CONSIDERATION OF RISK IN INVESTMENT DECISION-MAKING PROCESS

Lesson 6: Financial risk.

6.1 Introduction.

6.2 Return on assets.

6.3 Return on equity.

6.4 Operational leverage.

6.5 Financial leverage.

6.6 Absolute leverage.

6.7 Return on equity under uncertainty.

6.8 Optimal leverage.

6.9 Insolvency likelihood.

In the content of this subject there is a theoretical content that will be explained in the

theory classroom (whole group) and a practical content that will be explained in the

computer classroom (reduced groups). The application for the practical content of this

subject will be Microsoft Excel (version 2010, if possible).

During the explanation of the theory (magister lessons), we will use a projector so as to

make the content more easily understandable for students. In addition, several practical

examples will be explained on the blackboard.

We will motivate students for their participation by asking them questions in order to

check their extent of understanding about the contents of the subject, as well as to

motivate their critical attitude by creating debates.

Students with special educational needs should contact the Student Attention Service (Servicio de Atención y Ayudas al Estudiante) in order to receive the appropriate academic support

The final mark is the addition of two different marks:

ï‚· Final exam (Theory):                  40,00%

ï‚· Final exam (Practice):               60,00%

The Theory in the final exam will consist of a test exam. This part has a weight of 40%

on the final mark.

The Practice in the final exam will consist of a practical exercise that will be solved in

the computer classroom. This practice is about one or several practical case studies that

are to be solved using the Excel application. This part has a weight of 60% on the final

mark.

In order to pass the final exam it will be necessary that, both in Theory and Practice, the

student gets at least 30% of the punctuation. If this is not the case, the final mark will be

a maximum of 4,00.

This system of marks will be the same in Ordinary 1, Extraordinary 2 and Extraordinary

1 exams of the following academic year.