Finance
Objectives
This course is devoted to the fundamentals of
modern corporate finance theory and practice with a strong emphasis on its
real-life applications. Students are expected to learn about the fundamentals
of accounting and be able to interpret balance sheets and income statements, to
understand the sources and uses of cash flow in the organization, time value of
money, perform capital budgeting, understand the risk/return relationship and
the cost of capital, understand how capital structure affects risks, returns,
and value and understand the capital employed in the organization, net working
capital needs, its applications and funding and impact on financial management
General characterization
Code
14502
Credits
2
Responsible teacher
Paulo Pinho
Hours
Weekly - Available soon
Total - Available soon
Teaching language
Portuguese | English
Prerequisites
Available soon
Bibliography
Berk, Jonathan and DeMarzo, Peter, “Corporate
finance”, 4th ed, Pears
Teaching method
This is an applied course and thus relies extensively on class discussion of case studies, and therefore requires preparation in advance of each class. Case discussions will be supplemented with lectures, simulations, guest speakers and class exercises.?
Evaluation method
The assessment of this curricular unit is done together with the block of curricular units of the same area of knowledge. This assessment has 3 moments, which together define the final grade of the curricular unit:
• Individual exam with a weighting of 50% of the total mark
• Group work with a weighting of 35% of the total grade value
• Individual reflection-action exercise carried out at the end of the curricular unit, with a weighting of 15% of the total grade value. The set of individual action-reflection exercises is a journaling activity, which will constitute, at the end, a learning portfolio capable of synthesising the contributions of the Executive Master for that student.
Subject matter
The course will be structured around the
following topics.
• Introduction to corporate finance
• Understanding the accounting fundamentals
• Financial analysis: risk, return and cash flows
• New working capital requirements; Capital employed; ROCE
• Time value of money and its applications
• Measuring value creation: Net present value and its relation with the
internal rate of return
• Capital budgeting
• Capital structure and its impact on the value of the firm and its cost of
capital
• Bankruptcy costs and agency costs of debt
• Interaction between financing and investment decisions
• Short-term financial management
Programs
Programs where the course is taught: