Currículo
Financial Markets and Management FMM-MIM
Contextos
Groupo: Management > 2º Ciclo > Parte Escolar > Unidades Curriculares Obrigatórias
ECTS
3.0 (para cálculo da média)
Objectivos
The course envisages to provide the students with the comprehension of modern financial markets and their role in financial decision-making. Along this course unit students are familiarized with the process of managing the investment decisions, i.e., capital budgeting, with the management of the financing decisions, and with the interaction of both, investment & financial decisions. Students get understanding of the main techniques and methods used to evaluate investments, as well as the financing choices involved, and the optimal capital structure for a given company. The payout decision is also addressed. In addition to the traditional approaches, the main topics of the course are also addressed through the prism of ethics and sustainable finance, focusing on socially conscious investors and Environment, Social and Governance (ESG) financing.
Programa
1. Preliminaries & Sustainable Finance 1.1 Why study financial markets & management 1.2 What is sustainable finance and why is it important? 1.3 Fundamentals of financial statements & financial analysis 2. Managing investment decisions: Capital Budgeting 2.1 Investment decision rules: NPV rule, IRR rule, Payback rule, Profitability index 2.2 Determining Free Cash Flow & NPV 2.3 Analyzing the project: break-even analysis, sensitivity analysis, scenario analysis 2.4 ESG implications to capital budgeting 3. Capital structure management 3.1 The equity & debt costs of capital 3.2 The perfect world of Modigliani-Miller (1958) 3.3 The market imperfections 3.5 ESG implications to capital structure 4. Advanced valuation methods 4.1 Weighted Average Cost of Capital (WACC) method 4.2 Adjusted Present Value (APV) method 4.3 Flow-to-Equity (FTE) methods 5. Derivatives: 5.1 Option fundamentals 5.2 Option valuation 6. What is next for sustainable financial markets & management?
Método de Avaliação
Continuous Evaluation System: - Active participation in classes and mid-term quiz solving (20% of final grade). - Group Work Assignment (20% of final grade), consisting of analysing, solving and presenting a case study. Students must organize themselves in groups of six elements. Students must prepare a written report (hard copy), together with an Excel spreadsheet (when appropriate) and a PowerPoint presentation. - Final Exam (60% of final grade). The Final Grade will be the maximum of: (i) the weighted average of the 3 elements (active participation in classes & mid-term quiz solving; group work assignment; and final exam) or (ii) the final exam grade. In the Final Evaluation System: - The only grading element is the final exam. Students with a final grade higher than 17 may be required to defend their grades in an oral exam.
Carga Horária
Carga Horária de Contacto -
Trabalho Autónomo - 62.0
Carga Total -
Bibliografia
Principal
- Corporate Finance, 6th ed.: Berk, J. and DeMarzo, P. 2023 Pearson
- Corporate Finance: The Core, 5th edition: Berk, J. and DeMarzo, P. 2022 Pearson
- Environmental, Social, and Governance (ESG) Investing: Hill, J. 2020 Academic Press