Finance and Financial Management

Subject: 2021/2022 - 1S

Programmes

Hours Effectively Taught

CF2

Aims, Skills and Learning Outcomes

Summary description of course unit
This course aims to provide students with fundamental concepts of Finance and Financial Management focusing on the major themes of the company's value and its creation, definition of financial architecture, corporate governance, dividend policy, financial decisions and risk management tools through theoretical and practices.

Objetives and learning outcomes
Combining knowledge (academic and professional) on the topic of Finance and Financial Management with practical exercises and case studies, this course has two main objectives:
- Develop the issue of Finance and Financial Management, addressing the most important issues on the financial activity of the company, i.e., the concepts, methods, and tools that support the analysis and financial decision making in the context of certainty and uncertainty (investment and financing).
- Deepen the financial issues of diagnosis, structural and strategic issues of financial decision making, the most important decisions of creation and stabilization of the value, and the processes of reallocation of value in the company.

Skills to be developed
At the end of the course, students should be able to:
- Master the key concepts, tools, and instruments of Finance and Financial Management;
- Know and apply the main models and processes of business valuation;
- Apply analytical methodologies to diagnose a financial company;
- Analyze information on the financial characteristics of companies;
- Learn to make investment decisions and financing.

Programme

1. Introduction
1.1. The Financial Paradigm of the Corporation
1.2. The Financial Environment of the Corporation

2. Short-Term Financial Decisions
2.1. Short-Term Financing Operations
2.2. Cash Management
2.3. Decisions of Concession of Loans

3. Financing Decisions and the Enterprise Value
3.1. Financing Decisions and Financial Innovation
3.2. Operations with Equity Financing
3.3. Operations with Debt Capital Financing
3.4. Leasing Operations
3.5. Operations Funding for bonds

4. The Financial Architecture of the Corporation
4.1. The Cost of Capital
4.2. The Capital Structure and Agency Problems
4.3. Theories of Capital Structure

5. Dividend Policy
5.1. The Irrelevance of Dividend Policy
5.2. Dividend Policy in Frictionless Markets
5.3. The Agency Problems Applied to Dividend Policy ¿
5.4. The Effect of Market Imperfections - Information Asymmetry
5.5. Theories of Dividend Policy

6 Evaluation of Enterprises
6.1. Method of dividends
6.2. Method of discounted Free Cash Flows
6.3. Method of Economic Value Added and Market Value Added
6.4. Equity methods
6.5. Method Dualist
6.6. Evaluation Method for Comparison
6.7. Method averages the remaining models.

7. The Stabilization of Enterprise Value
7.1. The Financial Risks of the Enterprise as Element Value Loss
7.2. The Financial Risk Coverage

8. The Reallocation of Enterprise Value
8.1. The Financial Restructuring Corporate - Fusions and Acquisitions
8.2. Determination of Returns of a Fusion and Acquisition
8.3. Other Methods of Enterprise Restructuring

Demonstration of the syllabus coherence with the curricular unit's learning objectives

The first objective "Developing the problem of Finance and Financial Management" is addressed in chapter 1 of the program, which identifies the most relevant questions about the company's financial activity, that is, the concepts, methods and tools that support analysis and making financial decisions in the context of certainty and uncertainty (investment and financing).

The second objective is to "deepen the themes of financial diagnosis, strategic and structural issues of financial decision-making, the most important decisions to create and stabilize value, and the processes of reallocating value in the company"
is developed in the remaining chapters dealing with short- and long-term financial operations, the evaluation of companies, the process of risk management and the transfer of value in the company.

Main literature

Supplementary Bibliography

Learning Methods

Through theoretical and practical lessons, will be performed combining education with theoretically grounded critical analysis of the issues of financial decision making and study of real cases illustrative of each problem. Students will be required to intervene in the discussion of theoretical problems and practical implications. Furthermore, through the organization of students into work groups, studies will be conducted on topics applied to define.

In a logical theory and practice, it resorts to a set of strategies that include exposure theoretical analysis of case studies. The syllabus will be covered in order to teach to conceptualize, develop and systematize the important issues to consider in the field of Finance and Financial Management. Through discussion and student participation in analyzing real cases and practical exercises, will seek to develop a critical sense about the various models and tools presented in the classroom sessions.

Assessment Components

Avaliação distribuída com exame final

Assessment Components

Continuous Assessment

1. Written individual assignment with a weight of 20% in the final grade (10% + 10%).
2. Written tests with a weight of 80% (40% per test) in the final grade.

Under the terms of the General Regulation:

Final Exam

100% final exam

Demonstration of the coherence between the teaching methodologies and the learning outcomes

The first objective presupposes the use of the Microsoft Powerpoint program to present theoretical contents. The second objective combines the theoretical presentation of slides from the same software, with exercises in the classroom, through worksheets made available to the students, the accomplishment of an activity in a computer lab to access statistical and market data and the analysis of working documents.