Financial Analysis and Management

When teaching company valuation, special attention must be paid to students who do not have knowledge of Financial Calculation and Financial Management.

The curricular unit is a theoretical-practical subject, where, in addition to the transmission of knowledge, there is space for debate and critical reflection on the empirical evidence revealed in previous research (in this case when the themes are capital structure or distribution of results) or on the acquisition operations that are taking place mainly in the national space as is the case of companies this year: Cerealis; EFACEC

This course aims to provide students with the study of a set of complementary topics of subjects traditionally addressed in UC’s of Business Finance at the 1st cycle level. Specifically, the following topics will be addressed, theoretically and practically: a) valuation of companies and businesses; b) the capital structure policy; d) the dividend policy.

1. 1.   CAPITAL STRUCTURE

1.1. Capital Structure Irrelevance: Modigliani-Miller;

1.2. Capital Structure with Taxes;

1.3. “Trade-off” models (static and dynamic);

1.4. The “Pecking Order Theory”;

1.5. Agency costs and capital structure.

1. 2.      DIVIDEND POLICY

2.1.                      The Problem of Dividend Irrelevance;

2.2.                      Alternative Theories of Dividend Policy;

2.3.                      Determining factors of dividend policy.

1. EVALUATION OF COMPANIES AND BUSINESSES
   3.1. Valuation through discounted cash flow models;
   3.2. particular cases;
   3.3. Limitations;
   3.4. Valuation through market multiples models;
   3.5. Limitations.

NAO

FUNDAMENTAL

– Carvalho das Neves, J. (2002), Avaliação de Empresas e Negócios, McGraw-Hill. ISBN: 789727731312

Damodaran A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of any Asset, University Edition 3rd Edition

Bekaert, G., Hodrick, R. (2014), International Financial Management (2nd edition), Prentice Hall. ISBN: 978-0132162760

Farre-Mensa, Joan, Roni Michaely, and Martin C. Schmalz: Payout Policy. In: Robert Jarrow (Ed.), Annual Review of Financial Economics, Vol. 6, 2014.

Koller, T., Goedhart, M., Wessels, D. (2020), Valuation: Measuring and Managing the Value of Companies (7th edition), Wiley Finance. ISBN: 978-1-118-87370-0.

COMPLEMENTARY

Porfírio, J. (2003), Gestão Financeira Internacional, Rei dos Livros. ISBN: 9789725110454.

Sá Silva, E., Mota, C., Queirós, M., Pereira, A. (2015), Finanças e Gestão de Riscos Internacionais (2ª edição), Vida Económica. ISBN: 9789897681073