Fundamentals of Finance (What you should at least know about Finance)

General

Program Description

  • Teaching period: July 6 to July 17, 2020
  • Teaching hours: 45 hours
  • Academic coordinator: María José Muñoz Torrecillas
  • Knowledge area: Financial Economy and Accounting
Brainstorming over paper

Helloquence / Unsplash

Introduction

Understand financial information is very useful in both our personal and business lives. This is a basic course on what you should know about Finance even (or especially) if you are not a Business School student or you are not working in the Finance Department.

Individuals taking charge of their personal finances must make decisions such as:

  • When to start saving and how much to save for retirement,
  • Whether a car loan or lease is more advantageous,
  • Whether a particular stock is a good investment, and
  • How to evaluate the terms for a home mortgage.

In your business career, you may face questions such as:

  • Should your company launch a new product?
  • Which supplier should your firm choose?
  • Should we produce a part or outsource production?
  • Should we issue new stock or borrow money instead?
  • How can you raise money for your start-up firm?

All these decisions have a financial implication and would benefit for a better understanding of the basic concepts and tools of Finance.

Objectives

The main objective of this course is to help students understand and use the basic tools of finance in order to make better financial decisions.

Upon successful completion of the course students will be able to:

  1. Distinguish and apply basic concepts in Finance.
  2. Value distant and uncertain cash flows and move through, which is using compounding and discounting.
  3. Distinguish the main financial statements of a company and use the relevant information from these statements.
  4. Appraise investment projects and make investment decisions based on this appraisal.
  5. Analyze the financing options for a new business or project.

Content

Modules

Module A: Concepts and Tools of Finance

  • The time value of money and the interest rates
  • Compounding and discounting
  • Annuities
  • Loan amortization

Module B: Introduction to Financial Statement Analysis

  • The Balance Sheet and the Income Statement
  • The Statement of Cash Flows
  • Other Financial Statement Information
  • Financial Reporting in Practice

Module C: Fundamentals of Financial Management

  • Value and principles of valuation
  • Investment appraisal methods
  • Risk in investment appraisal

Module D: Financing a Start-up

  • Love money, venture capital, and bank loans.
  • Financing a start-up in practice.

Methodology

The methodology of this course will be eminently practical and the active participation and interaction of students will be required.

Teaching methods that will be used:

  • Lectures that include participation
  • Quizzes
  • Exercises and problem solving
  • Short case studies

The course is taught in English.

Professional Visits and Complementary Academic Activities

A visit to the Financial Department of Red Cross in Almería could be arranged.

One of the modules will be taught by the CFO of the Red Cross in Almería. He will add his experience and practical vision of the financial management of a company to this course.

Assessment

Final grade 0-100:

  • Class participation: 20 points
  • Class activities: 40 points
  • Evaluation activities: 40 points

The overall pass mark is 50 and a minimum of 80% of attendance is required.

Last updated Jan 2020

About the School

The University of Almería, Spain, organizes summer courses each July since 2013. They are designed by the most prestigious experts of the leading-edge fields of our University and are taught by Doctor ... Read More

The University of Almería, Spain, organizes summer courses each July since 2013. They are designed by the most prestigious experts of the leading-edge fields of our University and are taught by Doctors and Full Professors of proven expertise and experience in their respective areas of knowledge. All courses have an eminently practical focus and include visits to industries and companies of the field. Read less