Teaching Methodologies
In order to maximise student participation in class and in the learning process, the classes include the following teaching-learning
methodologies: (i) expository, to present the theoretical frameworks of reference; (ii) participatory, with analysis and resolution of practical
exercises; (iii) active, with individual work.
In order to increase student involvement with the course and self-study, the flipped classroom method will be used in some subjects, such
as capital structure selection and profit distribution policy. To the same end, students will be given group assignments.
Learning Results
The learning objectives (LO) are:
LO1. Analyze the main determinants of the exchange rate and the equilibrium relationships in the international exchange and interest rate
markets;
LO2. Explain the different currency risk hedging strategies;
LO3 – Explain the main motivations behind mergers and acquisitions (M&A);
LO4 – Explain the relationship between motivations and types of mergers and acquisitions;
LO5 – Compare the characteristics of a merger or acquisition through the form of acquisition, method of payment and behavior of the
managers of the acquired company;
LO6 – Explain the common reasons for restructuring;
LO7. Know the rationale behind the different theories associated with capital structure selection;
LO8. Know the theories and factors that shape the distribution of results
Program
1 – Foreign exchange operations
1.1 Nominal and real exchange rates
1.2 How the spot and forward markets work
1.3 Formation of forward rates
1.4 Theory of efficient markets
2 – Foreign Exchange Risk Management
2.1 Internal Currency Hedging Techniques
2.1.1 Choice of invoicing currency
2.1.2 Discounts for early payment or receipt
2.1.3 External financing in anticipation of export revenues
2.1.4 Diversification of currencies
2.2 External Exchange Risk Hedging Techniques
2.2.1 Futures contracts
2.2.2 Currency forwards
2.2.3 Swaps contracts
3 – Derivatives in the Foreign Exchange Market
3.1 Currency Options
4 – Mergers and Acquisitions and Corporate Restructuring
4.1 Categories of M&A
4.2 Value Creation and M&A Theories
4.3 Corporate Restructuring Strategies
4.4 Spin-offs, split-ups and split-offs
4.5 Equity carve-outs
5 – Capital Structure
5.1 Explanatory
6 – Profit distribution
6.1 Explanatory
Internship(s)
NAO
Bibliography
1. DePamphilis, D. M. (2018). Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases,
and Solutions. Academic Press, Ninth Edition.
2. Eiteman, D. K., Stonehill, A. I., Moffett, M. H. (2016). Multinational business finance. 14th edition. Global edition.
3. Ferreira, D. (2019). Swaps e Outros Derivados. Rei dos Livros
4. Gaughan, P. A. (2017). Mergers, Acquisitions, and Corporate Restructurings. Wiley Corporate F&A, 7th Edition.
5. Oxelheim, L., Alviniussen, A., Jankensgard, H. (2020). Corporate Foreign Exchange Risk Management.
6. Pacheco, L., Tavares, F., Salazar, V., Vieira, E., Peguinho, C. (2023). Finanças Internacionais – Teoria e Prática. Edições Silabo.
7. R. Brealey, S. Myers, F. Allen and A. Edmans. (2023). Principles of corporate Finance, McGraw Hill, 14º edition.
8. Silva, E.S.; Mota, C.; Queirós, M. e Pereira, A. (2016). Finanças e Gestão de Riscos Internacionais. Vida Económica; 2ª Edição.