Capital Budgeting

Code:

1GE308

Acronym:

PI

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2014/2015 - 2S (of 18-02-2015 to 17-06-2015)

Active?	Yes
Responsible unit:	Management
Course/CS Responsible:	Bachelor in Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LGES	197	Bologna Syllabus since 2012	3	-	6	42	162

Teaching language

Portuguese

Objectives

The course intends to introduce students to the capital budgeting process and techniques, developing the adequate skills both for valuation and for decision-making. The course addresses not only the main (traditional) valuation techniques, but also the most recent methods for project valuation (real options theory).

Learning outcomes and competences

To develop the skills to adress the capital budgeting, using several valuation techniques.

Working method

Presencial

Program

1. General Background to Project Valuation

2. The Capital Budgeting

3. The Main Criteria for Project Valuation

4. Methods to Approach Risk in Project Valuation

5. The Cost of Capital

6. Introduction to the New Methods for Project Valuation: the Real Options Theory

Mandatory literature

Alan C. Shapiro; Capital Budgeting and Investment Analysis, Prentice Hall, 2004
Ross S.; R. Westereld; J. Jaffe; and B. Jordan ; Modern Financial Management, McGraw Hill , 2008, 9th Ed
Brealey, R.; S. Myers; and F. Allen ; ;Principles of Corporate Finance, McGraw Hill , 2008, 9th Ed

Teaching methods and learning activities

The teaching method includes moments where the main theoretical and conceptual aspects will be presented, (and the main valuation techniques will be discussed), and also moments where concepts and theories will be applied by solving real-world problems and case studies.

Distributed evaluation with final exam.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Participação presencial	0,00
Teste	100,00
Total:	100,00

Calculation formula of final grade

Avaliação contínua sem exame final: Dois testes parciais, o primeiro a realizar a meio do semestre e o segundo a realizar na época normal de exames. Cada teste contribuirá em 50% para a classificação final. A realização do primeiro teste não vincula o aluno à avaliação contínua.

Avaliação apenas por exame final: Prova escrita a realizar na época de exames. A classificação mínima para a obtenção de aprovação na disciplina é de 9,5 valores. A classificação final corresponde à classificação obtida no exame.