Value Quantification Technics

Objectives

To learn basic concepts of financial calculus. To understand the financial report techniques. To understand the profitability analyses as well the techniques for development of products. To understand the valuation techniques of economical value regarding Insurance and Bank activities. Practical application to the financial institutions.

General characterization

Code

200129

Credits

7.5

Responsible teacher

Pedro Alexandre da Rosa Corte Real

Hours

Weekly - Available soon

Total - Available soon

Teaching language

Portuguese. If there are Erasmus students, classes will be taught in English

Prerequisites

N/A

Bibliography

¿Cálculo e Instrumentos Financeiros. Da Prática para a Teoria 2ª Ed. Nazaré Barroso. Escolar Editora; ¿Principles of Corporate Finance - Brealey-Meyers - McGrawHill, 7th edition. ; ¿Principles of Corporate Finance - Brealey-Meyers - McGrawHill, 7th edition. ; ¿Modern actuarial Theory and Practice, P. Booth, R. Chadburn, D. Coper, S.Haberman, D. James, Chapman Hall. ¿Market Consistent Embedded Value Principles, CFO Forum, June 2008; 0

Teaching method

Theoretical and applied lectures.
Examination with the possibility of a team work.
The students will be graded according to the grades obtained in a work group and in the final examination to be realized during the 1st or 2nd examination period.
The work group grade will have a weight of 50% in the final grade. To be approved the student has to have a positive final weighted valuation (equal or above the 10 mark), and the examination's grade cannot be below the 8 mark. All students that opt out of the work group, will have their final grade, based solely on the exam's grade.

Evaluation method

Theoretical and applied lectures.
Examination with the possibility of a team work.
The students will be graded according to the grades obtained in a work group and in the final examination to be realized during the 1st or 2nd examination period.
The work group grade will have a weight of 50% in the final grade. To be approved the student has to have a positive final weighted valuation (equal or above the 10 mark), and the examination's grade cannot be below the 8 mark. All students that opt out of the work group, will have their final grade, based solely on the exam's grade.

Subject matter

1.Basic Notions (2.0 hours)
1.1.Capital, Time and Interest type (discret and continous time)
1.2.Relationship between Interest Rates
1.3.Instant Capitalization Rate
2.Equivalence of Capital (2.0 hours)
2.1.Equivalence of Capital Equation and Equivalent Value Equation
2.2.Common Capital
2.3.Common Maturity and Middle Maturity
2.4.Internal Rate of Capitalization
2.5.Average Rates
3.Annuities (financial annuities or annuities certain) (2.0 hours)
3.1.Definition and classification
3.2.Annuities with Constant Payment (immediate, deferred, finite, infinite)
3.3.Annuities with Variable Payment
3.4.Annuities with Fraction Payments
4.Loan Repayment (3.0 hours)
4.1.Presentation of the most common forms of payment of loans.
5.Bond Loans (3.0 hours)
5.1.Bonds
5.2.Repayment of a Bond Loan
5.3.Life Expectancy of Obligations
6.Stock Valuation (2.0 hours)
6.1.Model Gordon-Shapiro
7.Analysis of Profit Testing (6.0 hours)
7.1.Definition and objectives
7.2.Projection of cash flows
7.3.Measures of profitability
8.Embedded Value (5.0 hours)
8.1.Definition and objectives
8.2.Construction model
8.3.Analysis of results
9.Market-Consistent Embedded Value (3.0 hours)
9.1.Definitions
9.2.Methodologies