Financial Management II

BK1. Fundamental knowledge of financial accounting.

BK2. Knowledge of financial calculus.

BK3. Knowledge of financial analysis.

The teaching-learning process combines the presentation of fundamental concepts with active learning methodologies, promoting student participation and the practical application of knowledge. The following methodologies are used:

TM1. Interactive presentation of the fundamental theoretical concepts.

TM2. Guided resolution of practical application exercises.

TM3. Discussion and analysis of real financial management cases.

TM4. Application of concepts to the resolution of business problems.

TM5. Continuous feedback during classes, fostering the consolidation of learning.

Classes are theoretical-practical in nature, favoring active student participation and the progressive development of the competences defined for this course unit.

The general aim of this course unit is to provide students with the necessary foundations to rationalize companies’ financial problems, seeking to present a rigorous and in-depth conceptual and methodological framework for their analysis. In terms of specific objectives, the aim is for students, by the end of this course unit, to acquire knowledge and develop competences that will enable them, both conceptually and in practice, to understand, discuss and evaluate the impact of:

LO1. investment decisions and their capacity to create value;

LO2. decisions regarding capital structure;

LO3. decisions regarding the profit distribution policy;

LO4. decisions regarding the choice of specific financing sources;

LO5. treasury management decisions;

LO6. financial planning.

Competences to be developed:

SD1. Critical thinking applied to financial management.

SD2. Ability to solve financial problems.

SD3. Application of quantitative decision-support techniques.

SD4. Technical communication of financial concepts and solutions.

C1. INTRODUCTION

C2. REAL INVESTMENT POLICY: AN INTRODUCTION

2.1. Investment cash flows

2.2. Investment appraisal criteria

C3. COMPANY VALUATION: AN INTRODUCTION

3.1. Discounted Cash Flows

3.2. Economic Value Added

3.3. Market Multiples

C4. MEDIUM- AND LONG-TERM FINANCING AND COST OF CAPITAL

4.1. Medium- and long-term financing sources

4.2. Capital structure policy and its main determinants

4.3. Risk, return, and opportunity cost of capital

4.4. The weighted average cost of capital

C5. PROFIT DISTRIBUTION POLICY

5.1. Different forms of profit distribution

5.2. Main determinants of the distribution policy

C6. TREASURY MANAGEMENT

6.1. Basic principles of treasury management

6.2. Working capital needs management

6.3. Short-term financial investments

6.4. Short-term financing sources

C7. FINANCIAL PLANNING

Students may choose one of two assessment regimes:

A) CONTINUOUS/PERIODIC ASSESSMENT:

AM1. Two individual written tests (25% + 25%).

Closed book.

Maximum duration: 60 minutes.

AM2. Individual written exam (50%).

Closed book.

Covering only the material not assessed in the individual written tests.

Maximum duration: 90 minutes.

- AI Guideline: Level 0 - no use of AI tools during the tests.

Under this assessment regime:

- Enrolment is mandatory and must be completed within the deadline announced on Inforestudante and on the platform indicated by the lecturer;

- The final grade results from the weighted average of the assessment components;

- A minimum grade corresponding to 40% of the total marks is required in each test;

- The results of the interim tests are valid for both the normal and resit exam periods;

- The student may withdraw from periodic assessment and opt for assessment exclusively by final exam.

B) FINAL EXAM ASSESSMENT:

AM3. Individual written exam (100%).

Closed book.

Maximum duration: 150 minutes.

A minimum grade of 10 (out of 20) is required to pass.

- AI Guideline: Level 0.

Provisions common to both regimes:

Whichever regime (A or B) is chosen, a mandatory oral exam will always follow the written exam whenever the grade obtained is equal to or higher than 16 (sixteen) points. In case of absence from the oral exam, the final grade will be 10 (ten) points.

If fraud is reasonably suspected during the grading of a written test, the student will be summoned to an oral exam to verify the knowledge and competences demonstrated. This verification is carried out by a panel composed of the course unit's lecturer and two other lecturers from the same area. If the student is unable to demonstrate the knowledge and competences shown in the written test, the test will be annulled.

Under any assessment regime, the use of graphing calculators is not permitted.

General AI Guideline:

The use of Artificial Intelligence tools is permitted exclusively as a support tool for individual study and preparation for the course unit. During any assessment test (individual written tests, exam, or oral exam), the use of Artificial Intelligence tools, or any resources not expressly authorized by the lecturer, is not permitted. Any improper use will be considered fraud and dealt with in accordance with the Regulations of the Polytechnic Institute of Coimbra.

NAO