Corporate Finance

Code:

1GE307

Acronym:

FEMP

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2021/2022 - 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	174	Bologna Syllabus since 2012	3	-	6	63	162

Teaching language

Portuguese and english

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. Multiples Method


2. DCF Method

3. Capital Structure

1. Introduction


2. Modigliani & Miller


3. The Trade-off Theory


4. The Pecking-Order Theory

4. Medium and Long Term Funding as a source of value creation

1. Equity


2. Debt


3. Hybrid Instruments

5. Shareholders return

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	50,00
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

Eligibility for exams

a) Achieve a final grade of 9.5 or higher in the final exam
b) Achieve an average of 9.5 or more in all 4 moments of the continuous assessment. The average should be calculated as defined in the following point

Calculation formula of final grade

a) Final Exam

b) Continuous Assessment:

• Two quizzes (xx of February and xx of May) that weighted 7.5% each
• One group assignments (MAXIMUM 4 students) that weighted 50%
• Final test (xx 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 3 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 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%).

g) The grades obtained in the group assignment and in the quizzes can still be used on the xx of June for final grade improvement.

Examinations or Special Assignments

The group assignment comprises the valuation of a company (selected by the teachers)

Deadlines:

• 24/02 – Information (by e-mail) about the Group constitution.
• 18/03 – Delivery/Submission (Moodle) of a brief financial analysis of the company to be valued.
• 08/04 – 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.
• 23th to 27th of May – Oral presentation of the group assignments.

Special assessment (TE, DA, ...)

FEP Assessment Regulations 

Classification improvement

FEP Assessment Regulations