Descriptive summary of the curricular unit This course aims to provide students with fundamental concepts of Corporate and International Finance 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.
Objectives and expected learning outcomes - Develop the issue of Corporate Finance, 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) and internationalization. - 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 - Master the key concepts, tools, and instruments of Corporate Finance; - 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, in an international context.
Programme
1 Introduction
2 Short-Term Financial Decisions 2.1 Financing Operations and Cash Management 2.2 Decisions of Concession of Loans
3 Financing Decisions and the Enterprise Value 3.1 Operations with Equity Financing and with Debt Capital Financing 3.2 Leasing Operations and Operations Funding for bonds 3.3 Decisions in the international context
4 The Financial Architecture of the Corporation 4.1 Cost of Capital 4.2 Capital Structure and Agency Problems
5 Dividend Policy 5.1 Dividend Policy 5.2 Agency Problems 5.3 Effect of Market Imperfections 5.4 Theories of Dividend Policy
6 Evaluation of Enterprises 6.1 Dividends, discounted Free Cash Flows, Economic Value Added and Market Value Added 6.2 Equity methods 6.3 Method Dualist 6.4 Method averages the remaining models
7 Stabilization of Enterprise Value 7.1 Financial Risk Coverage 7.2 International Risk
8 Reallocation of Enterprise Value 8.1 Fusions and Acquisitions 8.2 Methods of Enterprise Restructuring
Demonstration of the syllabus coherence with the curricular unit's learning objectives
The first objective "Developing the problem of Corporate Finance" 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) and internationalization.
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
Brealey, R., Myers, S., Allen, F.;Principles of Corporate Finance, 13th Edition, McGraw-Hill, 2020. ISBN: 978-1-260-01390-0
Ross, S., Westerfield, R. & Jordan, J.;Fundamentals of Corporate Finance, McGraw Hill, 2018. ISBN: 9781260091908
Supplementary Bibliography
Modigliani, S., Dockson, R., Jaffe, J., Jordan, B.;Corporate Finance, 12th Edition, McGraw Hill, 2018. ISBN: 9781260091878
Learning Methods
Through theoretical-practical classes, a combination of teaching and critical analysis based theoretically on the issues of financial decision-making and the study of real cases will be carried out. Students are expected to intervene in the discussion of theoretical problems and practical implications. In addition, studies will be carried out on topics applied to define
In a logical theory and practice, strategies are used that include the theoretical exposition of the analysis of case studies. The syllabus will be addressed with the aim of teaching how to conceptualize, develop and systematize the important issues to consider. Through the discussion of real cases and practical exercises, an attempt will be made to develop a critical sense of the different models and tools
Assessment Components
Avaliação distribuída com exame final
Assessment Components
Description
Type
Time (hours)
Conclusion Date
Attendance (estimated)
Lessons
45
Teste/Exame
3
Participação Presencial
3
Participação Presencial
12
Study
97
Total:
160
Continuous Assessment
1.Individual written work, weighting 20% in the final grade 2.Individual written tests, weighting 80% (40% weighting assigned to each test) in the final grade
Under the General Regulation:
a) The effective attendance of students in class will be recorded and, if the number of absences per student exceeds 30% of the total number of contact sessions for each course unit, will be automatically transferred to the final evaluation of the normal season; b) In the written tests and in the defined evaluation elements it is necessary to obtain a minimum grade of 7.5 points; c) If the student misses or achieves a grade lower than 7.5 points in the tests or evaluation elements referred to in the previous number, he / she will be automatically transferred to the final evaluation of the normal season; d) If the student misses or achieves a grade lower than 7.5 points in the second written test (held on the same date as the final written test of the normal season), he / she may require registration for evaluation at the time of appeal; e) All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.
Final Exam
Final exam (100%)
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.