Base Knowledge
Basic principles of corporate finance.
Teaching Methodologies
The teaching-learning process is based on an active learning approach, combining the structured presentation of fundamental concepts with their immediate application through practical exercises, problem-solving, and the analysis of real cases. Exercises using spreadsheets enable students to work with models, test scenarios, and develop analytical autonomy.
Students are also required to complete group assignments independently, preparing written reports, oral presentations and their defence. These assignments aim to allow students to apply the concepts covered throughout the semester autonomously and to work with real financial information of greater complexity than that presented in class. In one of the assignments, students must collect, analyse, and interpret the financial reporting of a real company and prepare a synthesis report.
These autonomous group assignments foster active learning by challenging students to collect, process, and interpret real financial data, applying in an integrated manner the concepts and techniques addressed throughout the semester.
Learning Results
The objective of this curricular unit is to equip engineering students with financial management skills relevant to decision-making in technological, industrial, and organisational contexts.
By the end of the curricular unit, students should be able to:
– Understand the fundamental principles of financial management.
– Relate and interpret information from the different financial statements.
– Understand and apply the concept of the time value of money.
– Identify the main determinants of risk.
– Apply the main methods of economic investment appraisal, including sensitivity and risk analysis.
– Critically and rigorously analyse the overall economic and financial situation of a company.
– Evaluate decision alternatives and justify proposed solutions.
– Communicate clearly, both in writing and orally, within the context of individual and group work.
Program
1. Fundamentals of Financial Management
Time value of money. Short- and long-term financial decisions. Investment and financing.
2. Economic Investment Decisions
Types of investment and the nature of investment decisions. Methods of economic investment appraisal. The role of risk.
3. Financial Reporting
Main financial statements: Balance Sheet, Income Statement and Cash Flow Statement. Impact of major transactions on financial statements.
4. Basic notions of taxation
Portuguese tax system: main direct and indirect taxes. Impact of taxation on financial statements.
5. Economic and Financial Analysis
Profitability, financial and risk indicators. Financial equilibrium and the impact of working capital. Cost-volume-profit analysis.
6. Financial Planning
Budgets and short-, medium- and long-term financial plans and their alignment with organisational goals.
Curricular Unit Teachers
José Luis Ferreira MartinhoGrading Methods
The assessment is composed of the following mandatory components:
- three assignments carried out during the semester, including their presentation and defence, to be carried out outside teaching hours (50%)
- final exam (50%).
Students must have a minimum grade of 42,5% in each assignment and an average grade of 47,5% (9,5/20).
Internship(s)
NAO
Bibliography
- Atrill, P. e McLaney, E. (2006). Accounting and finance for non-specialists, Prentice Hall, 5th ed. (2A-9-11)
- Brealey, R. e Myers, S. (2003). Principles of corporate finance, McGraw-Hill/Irwin, cop., 7th ed., International ed. (2A-5-39)
- Drury, C. (2000). Management and cost accounting, Thomson Learning, cop., 5th ed. (2A-9-10)
- Ferreira, R. F. (2007). Contabilidade para não contabilistas, Almedina, 2ª ed. (2A-9-14)
- Franco, V. (2008). Temas de Contabilidade de Gestão – Os custos, os resultados e a informação para a Gestão, Livros Horizonte (2A-9-12)
- Lopes, I. T. (2013). Contabilidade financeira : preparação das demonstrações financeiras, sua divulgação e análise. Escolar Editora. (2A-9-23)
- Menezes, C. (1996). Princípios de gestão financeira, Editorial Presença, 6ª ed. (2A-5-30)
- Mota, A. G. & et al. (1997). Gestão financeira: casos práticos. 2ª ed., Centro de Investigação de Mercados e Activos Financeiros (2A-5-37)
- Nabais, C. e Nabais, F. (2009). Prática Financeira I – Análise Económica e Financeira, Lidel, 5ª ed.
- Nabais, C. e Nabais, F. (2009). Prática Financeira II – Análise Económica e Financeira, Lidel, 5ª ed.
- das Neves, J. C. (1991). Análise Financeira: métodos e técnicas, Texto Editora, 5ª ed. (2A-5-5)
- Quelhas, A. P. & Correia, F. (2009). Manual de matemática financeira. Almedina. (2A-5-44)
- Ross, S.; Westerfield, R. & Jordan, B. (2018). Fundamentals of Corporate Finance, McGraw-Hill Education.
- White, G. I.; Sondhi, A. C. & Fried, D. (2003). The analysis and use of financial statements. Wiley. (2A-5-41)