Finance

Objectives

The main objective of this course (*) is to present the main concepts and tools of the modern theory of Finance that are required to analyze corporate financial decisions. The approach used in the course combines the presentation of the theory with introductory applications of the concepts. By the end of the course, students are expected to be familiar with fundamental concepts and to be able to use them in problems. 

(* 2021/22 academic year information)

General characterization

Code

1219

Credits

7

Responsible teacher

Fábio Santos

Hours

Weekly - Available soon

Total - Available soon

Teaching language

English

Prerequisites

Mandatory precedence: 1200. Principles of Management and 1201. Financial Accounting

Bibliography

Hillier, Ross, Westerfield, Jaffe, and Jordan, Corporate Finance, 3rd European Edition, McGraw-Hill, 2016.


Teaching method

Lectures are twice a week and last for 1.5 hours. Lectures are devoted to the presentation of the material by the instructor and to application of the material in the form of exercises. Also, we will discuss applications of the material to real-world problems using case studies. In addition, there is a weekly 1.5 hours discussion session in which applications of the theory presented in lectures will be discussed. The case reports serve to do an in-depth analysis of such problems in small groups of students. The problem sets serve to offer the students an opportunity to assess their progress in the course. 

(* 2021/22 academic year information)

Evaluation method

Regular exam period:

Students will be required to analyze and solve two cases in groups with five members (groups to be submitted on Moodle). Mid-terms and final exam are closed book. Passing grades in the course require a minimum grade of 9.5 in the final exam. The final grade is calculated using the following weights:

  • Case analysis 1: 15%

  • Case analysis 2: 15%

  • Midterm 1: 15%

  • Midterm 2: 15%

  • Final exam: 40%

Resit exam period:

Similar to regular exam period.

Grade improvement in regular exam period:

Similar to regular exam period or Final Exam only (100%), upon choice of student in the beginning of the semester.

Grade improvement in resit exam period:

Best grade between resit exam only and weighted average of all evaluation elements (same weights). 

(* 2021/22 academic year information) 


Subject matter

Time value of Money

  • Discounted cash flows and the valuation of assets
  • Capital Budgeting
  • Risk and Return
  • Capital Structure
  • Derivatives  
  • (* 2021/22 academic year information)
  • Programs

    Programs where the course is taught: