Business Finances

Presentation

Study of the financial function in a company, namely a wide range of techniques and methodologies inherent in financial analysis and short, medium and long term financial management in an organization.
The second point sets out key concepts in terms of both corporate finance and financial markets: profitability and risk. In this sense, the understanding of risk-free notions, systematic risk and risk premium is encouraged.
The third topic presents the evolution of capital structure theories (Modigliani and Miller, trade off theory, pecking order theory and agency theory) and dividend policy (Modigliani and Miller, taxists and signaling theory). Simultaneously to the theoretical framework, practical cases are presented on both subjects.
The fourth point is devoted to business and company valuation: the discounted dividend model, the FCFE and the FCFF.
In order to understand the dynamics of corporate growth and restructuring, topics five and six are presented.

Part of this Programme

Economics

Level of Qualification|Semesters|ECTS

| Semestral | 5

Year | Type of course unit | Language

2 |Mandatory |Português

Code

ULHT32-3510

Recommended complementary curricular units

Financial Accounting
Financial management

Prerequisites and co-requisites

n/a

Professional Internship

Não

Syllabus

1. Financial Analysis
2. Risk, Profitability, Cost of Capital and Company Balance
3. Capital Structure and Dividend Policy
4. Business and Corporate Appreciation
5. Mergers and Acquisitions
6. Company Restructuring

Objectives

Understanding the financial function and its importance for the smooth running of a business
Learning of elementary concepts related to the cost of capital and the capital structure.
Understand the role of the relationship between the results of a company and the distribution of dividends.
Introduction to the valuation of companies, equity and shares.
Understand the dynamics of corporate growth and restructuring.

Teaching methodologies and assessment

Practical and theoretical classes

Evaluation:

2 Tests (90%)

Assessment in class (10%)

References

Brealey, R.A., Allen, F. e Myers, S. C. - Príncipios de Finanças Empresariais. 8ª edição. McGraw-Hill, 2008

Mota, A., Nunes, J., Oliveira, L., Inácio, P., Ferreira, M. e Barroso, C. - Finanças Empresariais. 5ª edição. Edições Sílabo, 2015.¿

Mota, A. G., Barroso, C., Soares, H. e Laureano, L. - Introdução às finanças. 2ª edição. Edições Sílabo, 2014.

Office Hours