University of Puerto Rico

Rio Piedras Campus

Faculty of Business Administration

Department of Finance

Jimmy Torrez, Ph.D

Telephone: 764-0000 x-87106

e-mail: jimmy.torrez@upr.edu

Web page: http://jtorrez.uprrp.edu

COURSE TITLE

Financial Management

Coding

FINA 3106

NUMBER OF HOURS/CREDIT

45 hours / Three credits

PREREQUISITES, CORREQUISITOS AND OTHER REQUISITIONS:

Pre-requirement: FINA3107

Co-requirement: CONT 3106, ESTA 3041 OR THIS 3045

COURSE DESCRIPTION:

Introduction to financial management with an emphasis on efficient management of funds for maximizing the value of the company. The different models used for evaluating investment projects are discussed. The different short-term and long-term financial planning techniques are explained. It examines the aspects concerning the capital structure of the company and its importance in making financing and investment decisions. The discussion of these topics will consider the ethical principles that should characterize the profession.

LEARNING OBJECTIVES:

By completing the course the student will be able to:

* distinguish the importance for the company of efficient fund management

* analyze financial indicators in an integrated way

* apply the concepts of short-term and long-term financial planning

* apply working capital management techniques

* determine cash flows associated with investment projects in financial and capital assets

* apply the concept of money value over time

* analyze the associated risk and calculate the rate of return required for an investment in financial securities or in capital asset investment projects

* calculate the present value of investment projects in financial and capital assets

* calculate the average capital cost and marginal capital cost of a company or project and its impact on financing decisions

* describe the impact of dividend policy on the value of the company

* demonstrate the impact of financial decisions on the value of the company

* understand the importance of considering ethical aspects in financial decision-making

* use the calculator and computer as instruments to obtain and analyze financial information

Main Textbook

Ross S., Westerfield R. & Jordan B.D. (2020) Essentials of Corporate Finance. 11th edition, New York, NY: Mc Graw-Hill Irwin..

CONTENT SKETCH AND TIME DISTRIBUTION:

Time distribution*

Subject

I. The role of financial management

1.5 hours

II. Integrated analysis of financial statements

4.5 hours

III. Financial planning

4.5 hours

First Partial Examination

1.5 hours

IV. Value of money over time

6 hours

V. Risk and performance

5 hours

VI. Interest rate and bond valuation

4.5 hours

Second Partial Examination

1.5 hours

VII. Market and stock valuation

5 hours

VIII. Cost of capital

5 hours

IX. Valuation of capital investment projects

4.5 hours

Third Partial Examination

1.5 hours

Final (Optional)

Total contact hours

45 hours

* There will be no makeup exams.* If a student misses a midterm exam for any reason, the student will be required to take the final.* .

INSTRUCTIONAL STRATEGIES:

Face

Hybrid courses: Courses registered as hybrid will meet in person the first two weeks. This semester we will then have 2 weeks of non-synchonous lectures. After that class will meet once a week at the university and once a week online synchronously. The exception will be near break when the lecture will be all non-synchronous.

* Teacher's lectures

* Readings

* Individual tasks

* Appraisal activities

* Practical activities

MINIMUM RESOURCES AVAILABLE OR REQUIRED:

Resource

Account on the institutional learning management platform (e.g. Moodle)

Institution

Institutional email account

Institution

Computer with high-speed internet access or mobile device with data service

Student

Scheduled or applications: word processor, spreadsheets, presentation editor

Student

Integrated or external speakers

Student

Webcam or mobile camera with microphone

Student

EVALUATION TECHNIQUES:

Face

Assignments..............................................15%

Exams and possible quizzes.. ....................85%

Total.........................................................100%

REASONABLE ACCOMMODATION:

Under the Individuals with Disabilities Comprehensive Educational Services Act, any student requiring reasonable accommodation must notify the teacher on the first day of class. Students receiving Vocational Rehabilitation services should contact the teacher at the beginning of the semester to plan reasonable accommodation and the necessary assistance team in accordance with the recommendations of the Student Deanship's Office of Disabilities Services (OSEI). Also those students with special needs of some type of attendance or accommodation should contact the teacher. If a student has a documented disability (whether physical, psychological, learning, or otherwise, affecting their academic performance) and would like to request special academic provisions, the student should contact the Office of Student Disabilities Services (OSEI) of the Student Deanship to set up an appointment to start the relevant services.

ACADEMIC INTEGRITY

The University of Puerto Rico promotes the highest standards of academic and scientific integrity. Article 6.2 of the UPR General Student Regulations (Certification No. 13, 2009-2010 of the Board of Physicians) states that "academic dishonesty includes, but is not limited to: fraudulent actions, obtaining academic notes or degrees using false or fraudulent simulations, copying in whole or in part the academic work of another person, plagiarism in whole or in part of another person's work, copying in whole or in part another person's answers to the questions of an exam, making or getting another person to take on his behalf any oral or written test or examination, as well as the assistance or facilitation for another person to incur the aforementioned conduct". Any of these actions shall be subject to disciplinary sanctions in accordance with the disciplinary procedure established in the current UPR General Student Regulations. To ensure the integrity and security of user data, any hybrid and online course should be offered through the institutional learning management platform, which uses secure connection and authentication protocols. The system authenticates the user's identity using the username and password assigned in their institutional account. You are responsible for keeping your password secure, protecting, and not sharing your password with others.

SEXUAL HARASSMENT REGULATIONS

"The University of Puerto Rico prohibits gender and gender discrimination in all its forms, including sexual harassment. According to the Institutional Policy against Sexual Harassment at the University of Puerto Rico,

Certification No. 130, 2014-2015 of the Governing Board, if a student is being or was affected by behaviors related to sexual harassment, he or she may go to the Office of Student Attorney's Office, the Student Deanship or the Title IX Compliance Coordinator for guidance and/or filing a complaint."

* This course outline can be changed during the semester with prior notification .* An emergency such as an outbreak may cause us to meet less in person during the semester.

QUALIFICATION SYSTEM

A, B, C, D, F

Bibliography

Booth, L. (2020). Introduction To Corporate Finance. Hoboken: John Wiley.

Brewer, P.C., Garrison, R. H., & Noreen, E. W. (2019). Introduction to managerial accounting. New York: McGraw-Hill Education.

Brooks, R. (2019). Financial management: core concepts. New York, NY: Pearson.

Cornett, M.M., Adair, T.A., & Nofsinger, J. R. (2020). Finance: applications & theory. New York, NY: McGraw-Hill Education.

May, H.B. (2019). Basic finance: an introduction to financial institutions, investments, and management. Boston,

MA, USA: Cengage.

Zutter, C. J., & Smart, S.B. (2019). Principles of managerial finance. Harlow: Pearson Education.

Financial Electronic Portals:

www.ft.com/markets