Finance and Capital Budgeting

Code:

MIET0024

Acronym:

FAPI

Keywords
Classification	Keyword
OFICIAL	Financial Management
OFICIAL	Evaluation of Investment Projects

Instance: 2023/2024 - 1S

Active?	Yes
Responsible unit:	Department of Industrial Engineering and Management
Course/CS Responsible:	Master in Innovation and Technological Entrepreneurship

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MIET	16	Syllabus since 2008/09	2	-	6	42	162

Teaching language

English
Obs.: Inglês

Objectives

This course seeks to equip students with a set of skills that allows them elaborate a business plan, project a firm financial statements and interpret the valuation criteria.

Learning outcomes and competences

At the end of the course, students should be able to correctly implement a capital budgeting project and determine its economical and financial viability.

Working method

Presencial

Program

Finance:

• Concepts of financial mathematics
• Firm financing: equity and debt

Capital budgeting:

• Elaboration of a business plan
• pro-forma financial statements: balance sheet, income statement, cash flow statement
• Determination of the cost of capital
• Valuation criteria: net presente value, adjusted net presente value, internal rate of return, payback period

Mandatory literature

Solomon. P; Financial Accounting: a new perspective, , 2004
Richard A. Brealey, Stewart C. Myers, Franklin Allen; Principles of corporate finance. ISBN: 978-1-259-00951-8

Complementary Bibliography

Alan C. Shapiro; Capital budgeting and investment analysis. ISBN: 0-13-066090-6
PwC; Generico, In: An Example of a Complete Business Plan, 1999
Damodaran, A; The Dark Side of Valuation: Firms with no Earnings, no History and no Comparables: Can Amazon.com be valued?”, Working paper, Stern School of Business., 2000

Teaching methods and learning activities

Theoretical concepts will be presented in classes along with problems that will be explored and solved. Students are
required to write an essay (3 students).

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	60,00
Trabalho escrito	40,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	30,00
Frequência das aulas	30,00
Trabalho de campo	40,00
Total:	100,00

Eligibility for exams

General Evaluati on Rules of FEUP.

Calculation formula of final grade

Final mark = 0.6*Exam + 0.4*Assignement

Special assessment (TE, DA, ...)

100% Exam

Classification improvement

100% Exam