Cursos / 1º Ciclo / Faculty of Economy and Business Management :: Economics

Versao Portuguesa

FINANÇAS EMPRESARIAIS - 2018/2019

3º curricular year
Semestralidade: 2nd semester
ECTS: 6

Teachers

Leading Teacher: Prof. Doutor Renato Domingues
Assistant Professor: Prof. Doutor Renato Domingues

Class type and School hours

Main Aims/Objectives

The aim of this curricular unit to deep and update the students, both from a theoretical or a practical level, in the field of Corporate Finance.

In the current context of uncertainty, it is essential to provide students with knowledge of the business value, risk and decision making.

Specific Aims/Objectives

In the scope of this curricular unit, the specific aim is to systematize decision-making processes in area of corporate finance: value, risk, investment decisions, types and financing decisions, among others.

Skills to be acquired

Understand the various instruments available to the enterprise´s financial analysis;
Understand the importance of financial management of the enterprise;
Understand the investment and financing decisions.

Teaching Procedures

The classes have a component of exposition, which are used in audiovisual media and a practical component where through the analysis or problem solving are explored concepts explained.

Programme

1. INTRODUCTION
1.1 Motivation
1.2 Interest and utility of financial management
1.3 Investments classification
1.4 Decisions of acceptance / rejection investment

2. CASH-FLOWS
2.1 Determination of Cash-flows
2.2 Cash-flow of exploration
2.3 Cash flow of investment
2.4 Cash-flow global
2.5 Current prices and constant prices

3. COST OF CAPITAL
3.1 Weighted Average Capital Cost (wacc)
3.2 Capital Asset Pricing Model
3.3 Financing options
3.4 Financing decisions

4. ENTERPRISE VALUE
4.1 Concept of Present Value
4.2 Net Present Value (NPV)
4.2.1 Influence of the discount rate in NPV
4.2.2 Tax effect of depreciation on NPV
4.2.3 Constant prices vs. current prices
4.2.4 Special cases of NPV
4.2.5 Critical analysis of NPV
4.3 Profitability Index (RI)
4.4 Payback Period (PRI)
4.5 Internal Rate of Return (IRR)
4.6 Modified Internal Rate of Return (MIRR)
4.7 Analysis NPV versus IRR
4.8 Differential Method
4.9 Equivalent Annual Benefit (BEA)
4.10 Equivalent Annual Cost (EAC)

5. RISK
5.1 Introduction to the risk, rentability and opportunity cost
5.2 Relationship between risk and rentability
5.3 Traditional analyses of risk
5.3.1 Sensitivity analysis
5.3.2 Critical points
5.3.3 Scenario analysis

6. BUSINESS PLAN
6.1 Main steps
6.2 Factors of success of a business
6.3 Case Studies

Evaluation Type

The assessment follows the regulations provided for the University.
The continuous assessment is composed by two tests.

Teaching Resources

The presentation of the contents will take place predominantly in the classroom, where they will be exposed the issues of the program, using:
1. the Microsoft PowerPoint;
2. the book adopted, and
3. practical exercises.

Keywords

1. Financial Indicators
2. Value
3. Risk
4. Investment
5. Financing

Main Bibliography

Author Isabel Soares, João Couto, José Moreira, Carlos Pi
Title Decisões de Investimento - Análise Financeira de P
Edition 5ª Edição
Place Lisboa
Editor Edições Sílabo
Year 2015
Author Brealey, Richard; Myers, Stewart, Marcus, Alan
Title Fundamentals of Corporate Finance
Edition 7ª edição
Editor McGraw-Hill
Year 2011
Author Eduardo Sá e Silva, Mário Queirós
Title Análise de Investimentos em Ativos Reais Volumes I
Edition 1ª Edição
Place Porto
Editor Vida Económica
Year 2013

Complementary Bibliography

Author Carlos Pestana Barros
Title Avaliação Financeira de Projetos de Investimento
Author Esperança, José Paulo e Matias, Fernanda
Title Finanças Empresariais
Edition 2ª ed.
Place Lisboa
Editor Texto Editores
Year 2009