This curricular unit aims to provide students with fundamental concepts of Corporate Finance with emphasis on the major themes of company value.
Objectives and learning outcomes Combining knowledge (academic and professional) on the topic of Corporate Finance with practical exercises and case studies, this course has the following main objectives: 1. Develop the issue of Corporate Finance, addressing the most relevant issues about the company's financial activity, that is, the concepts, methods and tools that support the analysis and decision-making of financial decisions in a context of certainty and uncertainty. 2. Describe the company through the accounting and financial profile. 3. Evaluate the company's economic and financial performance. 4. Address the main sources of short and medium long term financing of a company. 5. Deepen the themes of financial diagnosis, strategic and structural issues of financial decision-making, the most important decisions for creating and stabilizing value, and processes for reallocating value in the company.
Skills to develop At the end of the course, students should be able to: - Master the main concepts, instruments and tools of Corporate Finance; - Know and know how to apply the main models and processes for evaluating companies; - Apply analytical methodologies to carry out the financial diagnosis of a company; - Analyze information about the financial characteristics of companies; - Know how to make investment and financing decisions.
Programme
1. Corporate Governance
1.1. Definition and fundamentals 1.2. Agency Theory 1.3. Mechanisms
2. Accounting and Financial Information 2.1. Essential goals 2.2. Main accounting and financial documents: their understanding and analysis 2.2.1. Balance: analysis and description of its elements 2.2.2. Profitability Analysis: analysis and description of the elements that compose 2.3. The issue of financial stability 2.4. The determination of Free Cash Flow
3. Analysis of Ratios 3.1. Introduction 3.2. Ratios of activity 3.3. Ratios of profitability 3.4. Operating Ratios 3.5. Ratios of indebtedness and liquidity
5. Evaluation of companies 5.1. Introduction 5.2. Methods based on the organization's performance 5.2.1. Method of dividends 5.2.2. Method of discounted Free Cash Flows 5.2.3. Economic Method Value Added and Market Value Added 5.2.4. Adjusted Present Value 5.3. Equity methods 5.4. Dualistic method 5.5. Evaluation method by comparing 5.6. Method of the means of the remaining models
6. Evaluation of Investment Projects 6.1 Cash-Flow Calculation 6.2 Financial evaluation of projects 6.3 Risk Analysis
Demonstration of the syllabus coherence with the curricular unit's learning objectives
The 1st objective is addressed in chapter 1 of the program, where the different economic and financial flows are identified.
The 2nd objective "Describe the company through the accounting and financial profile" is explored in the 2nd chapter through exercises and practical cases. The 3rd objective "Assessing the company's economic and financial performance" is dealt with in chapter 3 with the carrying out of work applied to real companies. Objective 4 "Address a company's main sources of short- and medium-long-term financing" is developed in chapter 4. Finally, the 5th objective refers to the evaluation of companies considering the different analysis models, namely equity and income methods.
Main literature
Carlos P. Maquieira e João Paulo Vieito;Finanças Empresariais Teoria e prática (3ª Edição), Escolar Editora, 2022. ISBN: 9789725925959
Watson, D. & Head, A. ;Corporate Finance, Principles and Practice, 8th Edition, Pearson, 2019. ISBN: 978-1292244310
Brealey, R. & Myers, S. ;Princípios de Finanças Empresariais, McGraw-Hill, 2013. ISBN: ISBN: 9788580552386 (10ª Edição)
Learning Methods
Through theoretical-practical classes, theoretically grounded teaching will be combined with critical analysis of financial decision-making issues and study of real cases illustrating each problem. Students will be required to intervene in the discussion of theoretical problems and their practical implications. In addition, through the organization of students into work groups, applied studies will be carried out on topics to be defined.
In a theoretical-practical logic, it uses a set of strategies that include theoretical exposition, analysis of practical cases, elaboration and presentation of works. The syllabus will be addressed in order to teach how to conceptualise, develop and systematize the important issues to be analyzed in the field of Corporate Finance. Through the discussion and participation of students in the analysis of real cases and practical exercises, an attempt will be made to develop a critical sense of the various models and instruments presented in the face-to-face sessions.
Assessment Components
Avaliação distribuída com exame final
Assessment Components
Description
Type
Time (hours)
Conclusion Date
Attendance (estimated)
Lessons
45
Participação Presencial
9
Teste/Exame
3
Study
103
Total:
160
Continuous Assessment
Two individual written tests with a weight of 20% + 45% in the final grade.
A group work with a weighting of 35%.
Under the terms of the general regulation: 1. The actual presence of the students in the classes will be registered and, if the number of absences per student exceeds 30% of the total number of contact sessions provided for each course unit, it will automatically be transferred to the final evaluation of the normal season. 2. In written tests and other evaluation elements referred to in paragraph 2 of Article 26 it is necessary to obtain a minimum grade of 7.5 (seven point five) values. 3. If the student is absent or has a grade lower than 7.5 points in the tests or evaluation elements referred to in the previous number, he will be automatically transferred to the final evaluation of the normal season. 4. If the student fails to obtain a grade of less than 7.5 points in the second written test (held on the same date as the final written test of the normal time), he or she may apply for evaluation at the time of appeal. 5. All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.
Final Exam
A test with the weight of 100%.
Demonstration of the coherence between the teaching methodologies and the learning outcomes
In order to achieve the objectives described above, the classes include the presentation of theoretical content using the Microsoft PowerPoint program. In the application of the contents taught, practical cases and exercises are made available to students in "PDF" format. In the different chapters the Microsoft Excel program is also used.