Corporate Investment Appraisal (1 º Sem 2018/2019)

FI (Finance)

This course presents the foundations of corporate finance with an emphasis on applications that are vital for corporate managers who are responsible for making significant strategic financial decisions. Capital investments, corporate financial structure and dividends policies are part of those strategic finance decisions that significantly affect the company?s operations, financials, returns and risk. The concept of net present value is used to analyze how these decisions affect the value of the firm. The course covers topics that interact with other areas of the company such as operations management, marketing and corporate strategy. The course is not designed to dwell on theory and abstraction, however the basics of financial theory is a prerequisite to a competent analysis, intelectual discussion and appropriate decision. We will emphasize the development of problem-solving skills based on the business environment, using case-studies for this development, as opposed to pure theory and mindless exercises. Students will be exposed to the real world and from there be able to get critical information for corporate financial decisions.

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JOÃO CARVALHO DAS NEVES (Responsável)



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Breve introdução

LEARNING GOALS The students will be able to: 1. Estimate the cost of capital of companies (both quoted and private) and investment projects; 2. Evaluate capital budget projects based on sound financial theory; 3. Decide the allocation of capital considering the existing of the portfolio investment opportunity; 4. Analyze, discuss and decide on the capital structure adequate to the strategy and risk appetite of the firm. 5. Define a dividend policy in the context of the corporate strategy 6. Evaluate a company?s operating and financial risk.