Business Finances

Presentation

The first section presents absolutely essential concepts both in terms of corporate finance and financial markets: return and risk. In this sense, the understanding of risk-free  assets, systematic risk and risk premium is encouraged.
Thesecond topic presents the evolution since the second half of the twentieth century of capital structure theories (Modigliani and Miller, trade off theory, pecking order theory and agency theory) and dividend policy (Modigliani and Miller, fiscalists). and signaling theory). Simultaneously to the theoretical framework, practical cases are presented on both subjects.
The third topic, and logical follow-up to the previous 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 four and five  are presented.

Part of this Programme

Business Management

Level of Qualification|Semesters|ECTS

| Semestral | 5

Year | Type of course unit | Language

3 |Mandatory |Português

Code

ULHT72-3510

Recommended complementary curricular units

Investment Analysis

Prerequisites and co-requisites

n/a

Professional Internship

Não

Syllabus

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

Objectives

The main ojective of the subject is to give the student access to essential knowledge of corporate finance.

Teaching methodologies and assessment

Theoretical-practical teaching with case presentations

References

Material do Professor

Fundamentals  of Corporate Finance

Jonathan Berk, Peter DeMarzo e Jarrad Harford, 2014

Pearson International Edition

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