Advanced Financial Management


The course intends to provide financial analytical tools that allow an investor or manager to value assets, assess investment opportunities and financing possibilities. In the first part of the course we discuss the theory of present value, the characteristics of different assets, the relationship between risk and return and the analysis of the cost of capital. In the second part  we present the theory of a firm’s decisions  concerning  capital budgeting (which investments  to make), capital structure (how to raise capital) and related decisions including mergers and acquisitions and the decision to become a publicly-traded firm.
Lectures and exams will balance quantitative and conceptual foundations based on the theory and practical examples presented in the lectures.

General characterization





Responsible teacher

Margarida Soares


Weekly - Available soon

Total - Available soon

Teaching language



Available soon


The textbook for the course is Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson 2nd Edition, Global Edition

Teaching method

There are two 1.5 hours lectures weekly where all theoretical material will be covered in combination with a few practice exercises. In addition, there will be extra exercises available for practice and a group assignment.
In addition, students are expected to set aside weekly periods of self-study to reflect on the lecture material, undertake the recommended readings and work on the practice exercises.

Evaluation method

?    Final exam – 50%
?    Midterm test – 30%
?    Group assignment – 15%
?    Class participation – 5%

Subject matter

?    Time value of money
?    Valuing stocks and bonds
?    Portfolio Theory
?    Options
?    Capital Budgeting
?    Capital Structure
?    Initial Public Offerings
?    Mergers and Acquisitions


Programs where the course is taught: