Corporate Finance

Basics of financial reporting

Cash flows versus Income

The learning process begins with the presentation of the fundamental concepts by the lecturer, followed by the resolution of practical exercises illustrating the concepts and techniques discussed. During the semester, students should do autonomously two assignments, including written reports and presentations.

The final grade is obtained from the assignments (50%) and the final exam (50%).

The main goal of this course is to provide future industrial engineers with the essential knowledge to understand financial management of manufacturing companies in the following main issues: investment and financing a company, economic and financial performance analysis, budgeting and short and long terms financial planning.

At the end of this course, students should be able to:

i) fully understand and combine the information contained in the different financial statements;

ii) understanf the time value of money and its applications;

iii) analyze capital budgeting decisions

iv) analyze the different kind of information required to report and judge the overall economic and financial status of the company;

v) Build a company’s budget;

vi) prepare the medium and long term financial plan.

vii) Evaluate various alternatives and justify the solutions proposed in the resolution of exercises.

viii) Prepare a written report and an oral presentation in a clear way, in the context of group work.

Financial accounting and reporting.

Firm taxes and the Portuguese fiscal system.

Economic and financial analysis.

Time value of money: present value and future value; annuities and perpetuities; nominal rates and effective rates.

Capital Budgeting analysis.

Short term and long term financial decisions and main financing sources.

Working capital management. Cash-flow management. Budgeting.

Medium and long term financial plan.

• - Exame - 40.0%
• - Trabalho - 60.0%

NAO

• 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)
• Holmes, Geoffrey; Sugden, Alan & Gee, Paul (2005). Interpreting company reports and accounts. 9th ed, FT Prentice-Hall. (2A-5-40)
• Ross, S.; Westerfield, R. and Jordan, B. (2008). Fundamentals of Corporate Finance, 8th edition, Standard Ed., McGraw-Hill Irwin
• White, Gerald I.; Sondhi, Ashwinpaul C. & Fried, Dov (2003). The analysis and use of financial statements. Wiley (2A-5-41)