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Finance for Entrepreneurs

Objectives

General Objectives:

- Promote the entrepreneurial capacity among the participants of different engineering courses through the enhancement of knowledge and skills required to develop business plans;

- Provide tools to integrate financial materials into a business model;

- Develop management competencies adopting a business holistic view.

Specific Objectives:

- Understand the role of financial management in the value chain;

- Provide tools to analyse and evaluate company´s financial position.  

- Identify the most adequated financial sources to specific investment projects: Short, medium and long terms;

- Provide adequated tools to elaborate economic and financial analysis;

- Understand the use of ratios method within the decision making process;

- Elaborate financial flows map;

- Relating risk, rentability and growth with value creation;

- Raising awareness of the challenges faced by companies operating in global markets, particularly with regard to hedging risks and opportunities to raise funds in capital market.

 

 

General characterization

Code

10617

Credits

3.0

Responsible teacher

Ana Paula Ferreira Barroso, Joaquim Amaro Graça Pires Faia e Pina Catalão Lopes

Hours

Weekly - 2

Total - 46

Teaching language

Inglês

Prerequisites

Knowledge requirements:

- Financial accounting

- Cost accounting

- Financial mathematics

 

 

Bibliography

Viedma, J.M. and Cabrita, M.R. (2012). Entrepreneurial Excellence in the Knowledge Economy. Intellectual Capital Benchmarking System. Palgrave Macmillan. (chap. 1, 2, 3 e 4).

Nabais, C. e Nabais, F (2009). Prática Financeira I. Análise Económico Financeira. (5ª Ed.). Lidel

Ferreira, M., Santos, J. e Serra, F. (2008). Ser empreendedor: Pensar, criar e moldar a nova empresa. Sílabo

Allen, B.M. (2007). Princípios de Finanças Empresariais. 8ª Ed. McGraw-Hill. 

Cusatis, P. e Thomas, M. (2005). Hedging Instruments and Risk Management. McGraw-Hill 

Sahlman, W. A. (1997). How to write a great business plan. Harvard Business Review, July-Aug, pp. 98-108.

Miller-Nobles, T., Mattison, B. and Matsumura, E., 2017, Horngren''''''''''''''''''''''''''''''''s Accounting, Pearson

Brealey, R., Myers, S. and Allen, F., 2013, Principles of Corporate Finance, McGraw-Hill


Teaching method

In order to facilitate the development of competencies, this course use different pedagogical approaches. 

- Lectures;

- Exercices;

- Analysis and interpretation of newspapers;

- Case studies;

- Interaction with a goup of entrepreneurs from NES (Nova Entrepreneurship School) 

- Discussion of team works.

Evaluation method

- 1st Group project                    40%

- 2nd Group project                   30%

- Closed-book test                      30% (minimum grade: 9,5)

Excluded from final exam: at least 65% classroom participation

Deadline for 1st Group project -  November 6, 2023;

Deadline for 2nd Group project -  November 27, 2023

Individual Test on  December 12, 2023, 10h

Office hours:  Thursday, 3pm-4pm, via face-to-face/Zoom / Skype, by appointment via email, jagl@fct.unl.pt; or face-to-face/Zoom / Skype, Zoom / Skype, to be scheduled via email, jagl@fct.unl.pt; Zoom link https://videoconf-colibri.zoom.us/j/91004909373?pwd=SmVXU1B6RGc2WGs3enoxR1F3RDFhUT09  (passcode 041924)

               

Subject matter

CP1. To be entrepreneur in a global market: Context and challenges

1.1. Financial crisis and the emergence of new business structures

1.2. To be entrepreneur-Why?

1.3. Financial paradigm and the entrepreneur

1.4. Investors objectives - How market evaluates return

1.5. The impact of financial risk in expected return

1.6. Managing sustainability and the emergence of new variables: environmental, social and ethics

CP2. Financial management as a strategic tool

2.1.  Financial management: an integrated perspective

2.2. Attractiveness analysis

2.3. Market analysis

2.4. Financial function in previsional methods and techniques

CP3. Business plan: Methods of financial forecasting

3.1. Cash-flow cycle

3.2. Methods of investment decision

3.3. Interaction between investment and financing decisions

3.4. Previsional financial statements

3.5. Working capital and working capital needs

3.6. Break-even point analysis

CP4. Risk, profitability and leveraging

4.1. Risk and profitability

4.2. Market risk and economic risk

4.3. Financial leverage and operational leverage

4.4. Fiscal effect

4.5. Weighted average cost of capital

CP5. Financing business opportunities

5.1. Interest rates, spreads,commissions and collateral

5.2. Overdraft and current account 

5.3. Credit disbursement and bank guarantees 

5.4. Documentary credits and documentary remittances

5.5. Purchase and sell of foreign currency 

5.6. International payments

5.7. Bonds and share issuance

5.8. Venture capital, seed capital and business angels

5.9. Application of funds: types, terms and remuneration

CP6. Economic and financial analysis

6.1. Accounting and economic and financial analysis

6.2. The balance sheet

6.3. The profit and loss account

6.4. Ratios method

6.5. Liquidity, solvency and profitability

6.6. Break-even point

CP7. Using hedging instruments to cover risks in international market

 7.1. Hedging concept

7.2. Exchange rate and interest rate

7.3. Tipology of risks: interest rate risk, exchange rate risk and market risk

7.4. Hedging instruments: characteristics and applications

7.5. The notion of Cap and Floor

7.6. Swaps and Forward Rate Agreements