Corporate Finance I

« Return

Objectives

This course intends to familiarize the students with the objectives, tasks, techniques and principles of firm’s financial management, serving as an introductory basis to corporate finance theoretical principles.

Thus, it’s intended that students develop skills that allow understanding:

• the framework needed to rational decision making in the financial field domain;

• The main tools and techniques of financial analysis;

• The importance of the notion of value and its mathematical formulations

• The sources, methods and techniques of financing alternatives that are available to the Finance Manager, in the light of the main existing theories

• All phases of the company’s financial planning process;

• An efficient management of the company's treasury;

• The implications that financial management has in the company's global strategy;

Program

1. Introduction to Corporate Finance

2. Financial Analysis – Basic Concepts and Elements

2.1. Financial Analysis Methodology

2.2. Financial Balance and Liquidity

2.3. Financial Cycles

3. Financial Analysis – Methods of Analysis

3.1. Methods of Analysis

3.2. Financial Balance on Financial Risk Analysis

3.3. Financing Strategies towards Risk

4. The Present Value and the Capital Cost Opportunity

4.1. The Concept of Value in Finance

4.2. Net Present Value and Return Rate

4.3. Foundations about the Net Present Value Method

5. How to Compute Present Values

6. Bonds and Stocks Present Values

7. Medium and Long Term Financing Sources

7.1. Overall Perspective

7.2. Equity Operations

7.3. Debt Operations

7.4. Hybrid Securities Operations

7.5. Debt and Risk Analysis Techniques

7.6. Medium and Long Term Financing Sources Evaluation

8. Financial Planning

Teaching Methodologies

Theoretical and practical classes based on the resolution of a pre-selected collection of exercises. In all classes it’s privileged the interaction between teacher/student so that we can maximize the level of students’ knowledge assimilation and simultaneously adjust the level of the disseminated knowledge. It’s privileged the use the expositive and explicative method, using frequently the dialogue with students. It’s also registered the use of graphical schemes, illustrations allusive to real situations, external information sources and practical application of theoretical concepts in a working group regime.

Bibliography

Neves, João Carvalho (2009). “Análise Financeira – Técnicas Fundamentais”, 2ª Edição, Texto Editora.

Brealey, Richard; Myers, Stewart and Allen, Franklin (2010), "Principles of Corporate Finance", 10th Edition, McGraw-Hill Book Co., Singapore.

Brealey, Richard; Myers, Stewart e Allen, Franklin (2007). “Princípios de Finanças Empresariais”, 8ª Edição, McGraw-Hill de Portugal.

Kester, W. Carl; Fruhan, Jr., William F.; Piper, Thomas R. and Ruback, Richard S. (1997), "Case Problems in Finance", 11th Edition, Irwin McGraw-Hill, Chicago.

Copeland, T., T. Koller e J. Murrin (2000). Valuation: Measuring and Managing the Value of Companies, third edition. McKinsey & Company, John Wiley, New York.

Damodaran, Aswath (2001), "Corporate Finance. Theory and Practice", John Wiley and Sons, 2nd Edition, New York.

Ross, Stephen A., Westerfield, Randolph W. and Jaffee, Jeffrey F. (2009), "Corporate Finance", 9th Edition, Irwin/McGraw-Hill Book Co., Singapore.

Code

0104627

ECTS Credits

6

Classes

  • Teóricas - 30 hours
  • Teórico-Práticas - 30 hours

Evaluation Methodology

  • 1st Test: 55%
  • 2 quizzes: 15%
  • Elaboration, presentation and discussion of group work: 30%