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ISCTE-IUL  >  Education  >  LG

Corporate Finance (1st Cycle) (1 º Sem 2016/2017)

Code: L5032
Acronym: L5032
Level: 1st Cycle
Basic: No
Teaching Language(s): English, Portuguese
Friendly languages:
Be English-friendly or any other language-friendly means that UC is taught in a language but can either of the following conditions:
1. There are support materials in English / other language;
2. There are exercises, tests and exams in English / other language;
3. There is a possibility to present written or oral work in English / other language.
1 6.0 0.0 h/sem 54.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 1.0 h/sem 55.0 h/sem 95.0 h/sem 0.0 h/sem 150.0 h/sem
Since year 2016/2017
Pre-requisites High skills in Financial Accounting and Matematical Finance
Objectives The students, at the end of the present learning unit, must develop competences that allow them, in the conceptual and practical planes, the understanding of the main concepts related with firm/project valuation, capital structure decisions and value creation, and identify the main sources of financing
Program I - The Capital Budgeting Decision
1. Cash Flow Estimation.
2. Criteria for Investment Selection.
3. Choosing among projects with Different Lives.
4. Sensitivity Analysis, Scenario Analysis, Breakeven Analysis.
5. Decision Tree Analysis.

II - Long-Term Types of Financing
1. Equity
2. Debt

III - Capital Structure
1. The Irrelevance of Capital Structure
2. Capital Structure with Corporate Taxes
3. Limits to the Use of Debt
4. Valuation of Real Investment Projects with Debt

IV - Valuation of Companies
1. Discounted Cash Flows
2. Economic Value Added
3. Market Multiples

V - Cash Management
1. Short Run financial management
2. Short Term Financial Investments
3. Sources of Short Term Financing
Evaluation Method Regular grading system:
- 2 mid-term tests (45% each)
- Individual assessment, attendance and active participation (10%)
- Non existence of a minimum grade
- Attendance to classes of 80%.

Students that opt to be out ot the regular grading system have two additional moments to pass each worth 100% of the final grade.
Teaching Method Each student should acquire analytical and communication skills, according with the established learning outcomes. The acquisition of these skills will use the following learning methodologies:
1.Expositional, presentation of the theoretical reference frames
2.Participative, analysis and resolution of application exercises analysis of case studies, and reading texts
3.Active, realization of individual/group works
4.Self study and autonomous work, as is contemplated in the class planning.
Observations
Basic Bibliographic - Brealey, R., S. Myers and F. Allen, 2010, Principles of Corporate Finance, McGraw-Hill, 10th. Edition
- Damodaran, A., 2010, Applied Corporate Finance, John Wiley & Sons, 3rd. edition
- Ross, S., R. Westerfield, and J. Jaffe, 2009, Modern Financial Management, McGraw-Hill, 9th. edition
Complementar Bibliographic -       Custódio, C., A. G. Mota, 2007, Finanças da Empresa, Booknomics, 2ª Edição
-       Mota, A.G., Barroso, C.S., Nunes, J.P. e  M.A. Ferreira, 2010, Finanças Empresariais, Teoria e Prática, Sílabo, 4ª edição