Corporate Finance

Code:

1GE307

Acronym:

FEMP

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2019/2020 - 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	158	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

At the end of the course, 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. DCF Method
   
   
   2. Multiples Metho
   
   
   
   


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 (%)
Teste	45,00
Trabalho escrito	45,00
Participação presencial	10,00
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

Eligibility for exams

a) Achieve a final grade of 9.5 or higher in the final exam
b) Achieve an average of 9.5. The average should be calculated as defined in the following point

Calculation formula of final grade

a) Final Exam

b) Continuous Assessment:

• One group assignments (MAXIMUM 4 students) that weighted 45%
• Final test (in the same day of the final exam) that weighted 45%

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

d) The students who fail can re-take the exam. The students who have taken the continuous assessment can choose to re-take only the Final Test (that will weight 45%) or the Final Exam (100%).

g) The grades obtained in the group assignment can still be used on final exam for final grade improvement.

Examinations or Special Assignments

The group assignment comprises the valuation and the determination of the optimal capital structure of a company (selected by the teachers)

Milestones:

•  Information (by e-mail) about the Group constitution.
•  Delivery/Submission (Moodle) of a brief financial analysis of the company to be valued.
•  Delivery/Submission (Moodle) of the valuation of the company (together with the brief financial analysis that supported it).
•  Delivery/Submission (Moodle) of the final work. All files that supported the work (pdf and an Excel file) should be submitted on Moodle at the deadline. The printing and binding report (pdf file) should be handed during the following week in the classes.
•  Oral presentation of the group assignments.

Special assessment (TE, DA, ...)

FEP Assessment Regulations 

Classification improvement

FEP Assessment Regulations