| Code |
13337
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| Year |
1
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| Semester |
S1
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| ECTS Credits |
6
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| Workload |
TP(30H)
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| Scientific area |
Management
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Entry requirements |
Not applicable.
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Learning outcomes |
The Corporate Finance Curricular Unit aims to develop the following skills:
i) To understand how the financial policy of a corporation affects its financial performance;
ii) Analyze the role played by investment and financing decisions in the value of a company;
iii) Prepare students to perform company valuations using different methods;
iv) Provide students with the theoretical concepts and the practical tools needed to determine the cost of capital;
v) Understand the problem of the capital structure;
vi) Understand how the dividend policy affects the company's financing options.
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Syllabus |
Part I - Revision of Fundamental Concepts
1. Revision of Fundamental Concepts
1.1 Financial Statement Analysis
1.2 Time Value of Money
1.3 Interest Rates
Part II – Capital Budgeting and Corporate Valuation
2. Capital Budgeting
2.1 Investment Criteria
2.1.1 Net present value
2.1.2 Internal rate of return
2.1.3 Payback period
2.1.4 Adjusted present value
3. Cost of Capital
3.1 Debt
3.2 Equity
3.3 Weight cost of capital
4. Valuation Methods
(cash flows, market multiples, dividends, economic value added, market value added)
Part III - Capital Structure
5. Capital Structure and Modigliani and Miller
5.1 In the absence of corporate taxes
5.2 With corporate taxes
6. Other factors that influence the capital structure
6.1 Personal taxes
6.2 Costs of financial distress
6.3 Agency problems
Part IV - Payout decision
7. Dividend policy
7.1 Payout versus retain
7.2 Dividends versus repurchases
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Main Bibliography |
Brealey, R.;Myers, S.; Allen, F.; Mohanty, P. (2018). Principles of Corporate Finance. Mcgraw-Hill.
Damodaran, A.(2001). Corporate Finance: Theory and Practice. Wiley.
Ross, S., Jordan, B. (2018). Fundamentals of Corporate Finance. Mcgraw-Hill.
Tirole, J. (2006). The Theory of Corporate Finance. Princeton University Press.
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Language |
Portuguese. Tutorial support is available in English.
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