Corporate Finance

Code:

1GE307

Acronym:

FEMP

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2017/2018 - 2S

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	145	Bologna Syllabus since 2012	3	-	6	63	162

Teaching language

Portuguese

Objectives

It is intended that students develop skills to understand and evaluate the company's main objective - value creation - and how decisions about the sources and financing instruments as well as on the distribution of its results may contribute to this goal.

Learning outcomes and competences

Students should be able to understand the value creation process of a company and the sources and financing instruments.

Working method

Presencial

Program

1. The Objectives and the Scope of Corporate Finance
   
   
   
   1. What is Corporate Finance?
   
   
   2. Fundamentals of Corporate Finance
   
   
   3. Corporate Objectives
   
   
   4. Agency Theory and Agency Costs
   
   
   5. Corporate Governance
   
   
   6. Information and market efficiency
   
   
   
   


2. The Determination of Company Value
   
   
   
   1. Income Method
   
   
   2. Multiples Method
   
   
   3. Options Method
   
   
   
   


3. Medium and Long Term Funding as a source of value creation
   
   
   
   1. Introduction
   
   
   2. Capital Structure
   
   
   3. Financing for Equity
   
   
   4. Financing for Debt Capital
   
   
   5. Funding for Hybrid Instruments
   
   
   
   


4. The Return on Own Capital
   
   
   
   1. Dividend Policy
   
   
   2. Repurchase of shares
   
   
   3. Theoretical models and Distribution Policies
   
   
   
   

Mandatory literature

ROSS, Stephen, Randolph W. WESTERFIELD e Jeffrey JAFFE; Corporate Finance, McGraw-Hill, 2010
BREALEY, Richard, Stewart C. MYERS and Franklin ALLEN; Principles of Corporate Finance, Principles of Corporate Finance, 2010

Teaching methods and learning activities

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	35,00
Teste	15,00
Trabalho escrito	50,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Elaboração de projeto	63,00
Estudo autónomo	36,00
Frequência das aulas	63,00
Total:	162,00

Calculation formula of final grade

a) Final Exam

b) Continuous Assessment:

• Two quizzes (2nd of March and 25th of May) that weighted 7.5% each
• Two group assignments (MAXIMUM 4 students) that weighted 50% (30% the valuation project and 20% the capital structure case study)
• Final test (4th of June) that weighted 35%

c) The continuous assessment grade cannot exceed the final test grade (or weighted average of the final test - 70% - and the two quizzes - 15% each - if the quizzes average grade is higher than the final test grade) more than 2 points.

d) All students with a grade higher than 9.5 will be approved.

e) Continuous assessment can be taken only by students enrolled in a class but the group can have students from different classes.

f) The students are forced to follow the continuous assessment option once they hand the second group assignment.

g) The students who fail, can re-take the exam on 25th of June. The students who have taken the continuous assessment can choose to re-take only the Final Test (that will weight 35%) or the Final Exam (100%).

h) The grades obtained in the group assignment and in the quizzes, can still be used on 25th of June for final grade improvement.

Examinations or Special Assignments

The first group assignment comprises the valuation of a company (selected by the teachers) while the second group assignment is a case study on the capital structure topic (case and question will be available in Sigarra)

Deadlines:

• 23/02/2018 – Information (by e-mail) about the Group constitution.
• 12/03/2018 – Delivery (by e-mail) of a brief financial analysis of the company to be valued.
• 10/04/2018 – Delivery of the first group assignment that should include the final valuation of the company (together with the brief financial analysis that supported it). A pdf and an Excel file should be send my e-mail at deadline. The printing and binding report (pdf file) can be handed during that week in the classes.
• 30/04/2018 – Delivery of the second group assignment. A pdf and an Excel file should be send my e-mail at deadline. The printing and binding report (pdf file) can be handed during that week in the classes.
• 28^th, 29^th and 30^st of May – Oral presentation of one of the group assignments.

Special assessment (TE, DA, ...)

Assessment Regulations 2016-2017

Classification improvement

Assessment Regulations 2016-2017