Financial Management I

Code:

LGE302

Acronym:

FIN I

Keywords
Classification	Keyword
OFICIAL	Business Sciences

Instance: 2005/2006 - 1S

Active?	Yes
Web Page:	http://www.fep.up.pt/disciplinas/lge302/
Responsible unit:	Department of Management
Course/CS Responsible:	Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
GES	282	Official Curricular Structure since 2004	3	3		-

Objectives

In this course we discuss some of the main financial decisions of a corporate manager. We also look at the theories and applications related with asset valuation. The course is also concerned with the characteristics and analysis of individual securities, as well as the theory and practice of optimal combining securities into portfolios. Finally we give attention to derivatives instruments and their valuation.

Program

1. Introduction
Corporate Finance Principles and Objective in Corporate Finance.
2. Markets and Financial Securities
Types of Markets. Types of Financial Securities (Risk and Return Characteristics).
3. Bonds and Stocks Valuation
Net Present Value Applications.
4. Modern Portfolio Theory
Diversification Effects. Delineating Efficient Portfolios. Efficient Frontier.
5. Models of Equilibrium in the Capital Markets
Overview. Capital Asset Pricing Model (CAPM). Multi-Factor Models. Arbitrage Pricing Theory (APT)
6. Markets Efficiency
Markets Efficiency: Concepts, Tests and Empirical Evidence.
7. Derivatives Valuation
Options Valuation. Futures Valuation.

Main Bibliography

Ross, S., R. Westerfield and J. Jaffe (2002), Corporate Finance, Irwin/McGraw-Hill, 7ª Ed.

Complementary Bibliography

Brandão, E. (2003), Finanças, Porto Editora, 3ª Edição,
Damodaran, A. (2001), Corporate Finance - Theory and Practice, John Wiley & Sons, Inc., 2ª Edição.
Brealey, R. e S. Meyers (1998), Princípios de Finanças Empresariais, McGraw-Hill, 5ª Edição

Teaching methods and learning activities

Theoretical and practical lessons.

Evaluation Type