Advanced Financial Management
Objectives
Every meaningful decision of a corporation has financial implications. The course aims to present the key financial decisions of a corporation , which are threefold: the investment decision, the financing decision and the payout decision. In the first half of the course, we will focus on the investment decision by discussing the theory of present value, the characteristics of different assets, the relationship between risk and return and the analysis of the cost of capital, the firm's decisions concerning capital budgeting and related decisions including mergers and acquisitions. In the second half of the course, we will present the financing decision and the payout decision. The financing decision relates to the firm decision of how to raise capital and the payout decision is about the amount and the channel for the firm to distribute its profits to the shareholders.
General characterization
Code
2581
Credits
7
Responsible teacher
Margarida Soares
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
n/a
Bibliography
The textbook for the course is Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson 2nd Edition, Global Edition
Teaching method
The course will be taught with a combination of weekly video lectures and in-person classes. The video lectures will cover all the concepts in detail and will be aided by formative quizzes, which will help students assess their understanding of the material. Students are expected to watch the videos, undertake the recommended readings and do some practice exercises before the in-person classes. In the in-person classes, there will be a quick review of the key concepts, practice exercises, discussion of relevant news articles and short case studies.
Evaluation method
? Final exam – 40%
? Midterm test – 20%
? Course assignment – 30%
? Participation/Quizzes – 10%
Subject matter
Financial Statement Analysis
Time value of money
Valuing stocks and bonds
Risk and return. Portfolio Theory and CAPM
Capital Budgeting
Mergers and Acquisitions
Capital Structure
Raising Equity Capital
Payout Policy
Programs
Programs where the course is taught: