Corporate Finance
Keywords |
Classification |
Keyword |
OFICIAL |
Management Studies |
Instance: 2022/2023 - 1S ![Requerida a integração com o Moodle Ícone do Moodle](/fep/pt/imagens/MoodleIcon)
Cycles of Study/Courses
Teaching language
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
- What is Corporate Finance?
- Fundamentals of Corporate Finance
- Corporate Objectives
- Agency Theory and Agency Costs
- Corporate Governance
- Information and market efficiency
2. The Determination of Company Value
- Multiples Method
- DCF Method
3. Capital Structure
- Introduction
- Modigliani & Miller
- The Trade-off Theory
- The Pecking-Order Theory
4. Medium and Long Term Funding as a source of value creation
- Equity
- Debt
- Hybrid Instruments
5. Shareholders return
- Dividend Policy
- Repurchase of shares
- 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
Theoretical discussion of the contents of the program. Practical exercises. Group assignment.
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:
- 31/09 – Information (by e-mail) about the Group constitution.
- 30/10 – Delivery/Submission (Moodle) of a brief financial analysis of the company to be valued.
- 11/12 – 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.
- 19th to 20th of December – Oral presentation of the group assignments.
Special assessment (TE, DA, ...)
FEP Assessment Regulations
Classification improvement
FEP Assessment Regulations