Corporate Finance I

Base Knowledge

No prior knowledge is required.

Teaching Methodologies

In this course, interactive methodologies are used to articulate the theoretical and practical dimensions, deepen them, and encourage participation, debate, and individual and critical reflection on real-world cases.

Furthermore, a group project aims to develop collaborative work skills. Finally, students will be encouraged to work independently (to consolidate and deepen knowledge), prepare for and/or continue work from in-person sessions, and receive tutorial support (to aid learning).

Learning Results

The objective of this course unit is to equip students to deepen their theoretical knowledge and apply corporate finance techniques to real-world situations. Given the above, the specific objectives are:

a) To understand the financial position of companies;

b) To create well-founded financial analyses;

c) To envision future valuation situations.

Program

1. INTRODUCTION TO CORPORATE FINANCE

1.1 The financial function in companies

1.2 Objectives of corporate finance

1.3 Role of the financial manager

 

2. FINANCIAL EQUILIBRIUM

2.1 Fundamental documents – Balance Sheet and Income Statement

2.2 Equity Approach

2.3 Limitations of the equity approach

2.4 Functional Approach

2.5 Working Capital and Working Capital Requirements

2.6 Limitations of the functional approach

 

3. PROFITABILITY AND RISK ANALYSIS

3.1 Concept and types of profitability

3.2 Fundamental profitability equations

3.3 Economic risk vs. Financial risk

 

4. BUSINESS STRATEGY, CAPITAL RESTRUCTURING, AND VALUE CREATION

4.1 Agency Costs and Theory of Agency

4.2 Corporate governance and corporate control

4.3 Mechanisms for corporate restructuring, control, and economic rationality

Curricular Unit Teachers

Beatriz Rosa Lopes Cancela

Internship(s)

NAO

Bibliography

Main Bibliography:

Fernandes, C., Peguinho, C., Vieira, E., Neiva, J. (2018). Análise Financeira: Casos Práticos. Aplicação no âmbito do SNC. 2ªEdição; Ed. Sílabo

Breia, A. F., Mata, M. N., Pereira, V. (2014). Análise económica e financeira: aspetos teóricos e casos práticos, Rei dos Livros.

Mota, A. G.; Barroso, C.; Soares, H. e Laureano, L. (2013). Introdução às Finanças? Fundamentos de Finanças com Casos Práticos Resolvidos e Propostos”, Ed Sílabo

Neves, J. C. (2012). Análise e Relato Financeiro 5ª Edição, Texto Editores.

Silva, E. (2014). Decisões de Financiamento aspetos práticos, Vida económica

 

 

Complementary Bibliography:

Barros, C. (2007). Avaliação Financeira de Projetos de Investimento, Escolar Editora.

Bodie Z., Kane, A. and Marcus A. (2012). Essentials of Investments, McGraw Hill, 9th Edition

Hawawini, G. and Viallet, C., 2011, Finance for Executives – Managing for Value Creation, South‑Western Cengage Learning

Brealey, R. A.; Myers, S. C. and Alen, F. (2013). Principles of corporate Finance, McGraw Hill, 11ª edition.

Neves, J. C. (2011). Avaliação e Gestão da Performance Estratégica da Empresa, 2ª Edição, Texto Editores.

Esperança, J.P. e F. Matias, (2009) Finanças Empresariais, Editora Dom Quixote.

Glaucos A. B., & José H. P.J. (2015). Elaboração e Análise das Demonstrações Financeiras, Atlas.

Lawrence Revsine; Daniel Collins; Bruce Johnson; Fred Mittelstaedt and Leonard Soffer (2018), Financial Reporting and Analysis 7th Edition, McGraw-Hill.

Martin S. F & Fernando A. (2011). Financial Statment Analysis: A Pratitioner´s Guide, 4th edition, Wiley Finance.

Vieira, E. R. Valente e M. Madaleno (2012). Risco Financeiro, Ed Sílabo

Watson, D., & Head, A. (2019). Corporate Finance-Principles and Practice, eighth edition, Pearson.

Silva, V., J., e P. Ferreira (2014). Princípios de Gestão Financeira, Rei dos Livros.

Robert, H. (2018). Analysis for Financial Management. 12th Edition, Macgraw-Hill.

Robinson, T. R., Henry, E., Pirie, W. L. and Broihahn, M. A. (2012), International Financial Statement Analysis, John Wiley & Sons, Inc.

Ross, S.; Westerfield R. and Jaffe, J. (2010). Essentials of Corporate Finance Corporate Finance, McGraw-Hill Education, 7ª edition.

Schoenmaker, D. & Schramade, W. (2019). Principles of Sustainable Finance, Oxford, United Kingdom.