This course aims to provide students with fundamental concepts of Corporate 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
Combining knowledge (academic and professional) on the topic of Corporate Finance with practical exercises and case studies, this course has two main objectives:
- 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). - 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 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.
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
Main literature
Brealey, R., Myers, S. and Allen, F.;Principles of Corporate Finance, 12th Edition, Mcgraw-Hill, 2016. ISBN: 9781259144387 (Poderão ser usadas as seguintes edições anteriores: 8.ª, 9.ª, 10.ª ou 11.ª. Em alternativa, poderá ser usada a 5.ª edição traduzida em Português.)
Vieito, J. e Maquieira, C.;Finanças Empresariais - Teoria e Prática, 2.ª Edição, Escolar Editora, 2013. ISBN: 9789725923665
Maness, T. and Zietlow, J.;Short-Term Financial Management, 3rd Edition, South-Western College, 2004. ISBN: 0324202938
Neves, J. C.;Avaliação de empresas e negócios, McGraw-Hill, 2002. ISBN: 9789727731312
Ross, S., Westerfield, R., Jaffe, J. and Jordan, B.;Modern Financial Management, 8th Edition, Mcgraw-Hill, 2007. ISBN: 0071286527
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 Corporate Finance. 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
Continuous Assessment
1. Written individual assignment with a weight of 20% in the final grade.
2. Written tests with a weight of 80% (40% per test) in the final grade.
Under the terms of the Bachelor's Regulation:
1. The students' attendance in classes will be recorded and, if the number of absences per student exceeds 30% of the total number of lessons predicted for each course unit, the student will be automatically transferred to the final evaluation ("época normal").
2. In the written tests and other assessment elements referred to in points b) to e) of paragraph 2 of Art. 39 it is necessary to obtain a minimum grade of 7.5 (seven dot five) points.
3. If the student fails a test or receives a grade lower than 7.5 points in the tests or in another assessment element referred to in the previous number, the student will be automatically transferred to the final evaluation ("época normal").
4. If the student misses or fails to obtain a grade of at least 7.5 points in the second written test (held on the same date as the final written test of "época normal"), the student may apply for evaluation at "época de recurso".
Final Exam
Written exam. And under the terms of Art. 41 of the Bachelor's Regulation:
- The practical or theoretical-practical work(s) referred to in point b) of paragraph 2 of Art. 39 may also be considered, with a weighting corresponding to half of that considered in the continuous assessment, if the student communicates such intention to the professor, filling, in that case, a specific form to be made available by the professor at the moment of the written exam.
Improvement of final grade
The exam will correspond to 100% of the final grade.