Financial Management

Scholar Year: 2018/2019 - 2S

Courses

Head Teacher Responsability Paula Alexandra Godinho Pires Heliodoro Head

Weekly workload Hours/week T TP P PL L TC E OT OT/PL TPL O S Type of classes 3 Lectures Type Teacher Classes Hours Theoretical-practical Totals 3 9,00 Paula Heliodoro   3,00 Pedro Barroso   3,00 Rui Dias   3,00

Teaching language

Portuguese

Intended learning outcomes (Knowledges, skills and competencies to be developed by the students)

• Contribute to organizational understanding and professional adaptability;
• Contribute to the understanding of the financial side of business management;
• Contribute to the development of relational skills; collecting; sorting; analyzing and communicating information and applying knowledge.

Syllabus

1. FINANCIAL MARKET
1.1. Capital Market and Monetary Market
1.2. The Primary Market
1.3. Stock Exchanges and their Economic Function

2. EVALUATION, RISK AND RETURN
2.1. Bonds and Equities Evaluation
2.2. Financial Assets systematic and specific risk
2.3. Financial Assets Evaluation Theories

3. PORTFOLIO THEORY
3.1. The optimum portfolio selection. Markowitz Model
3.2. Portfolio Performance Measurement

4. DIVIDEND POLICY
4.1. Dividends Policies
4.2. The Irrelevance of Dividend Policy
4.3. The Relevance of Dividend Policy

5. CAPITAL STRUCTURE
5.1. Company Capital Structure
5.2. Weighted Average Cost of Capital

6. DERIVATIVE FINANCIAL INSTRUMENTS
6.1. Options
6.2. Futures

Demonstration of the syllabus coherence with the UC intended learning outcomes

The objectives of the curricular unit are to:
(1) Know and understand the functioning of financial market
(2) Evaluate risk and return
(3) Know, distinguish and evaluate the main financial instruments
(4) Manage a portfolio of financial assets
(5) Evaluate different financing alternatives and correctly decide
(6) Understand the impact of dividend policy
(7) Design capital structure adequately
(8) Make a financial plan. Contents are consistent with the curricular unit objectives, as they correspond systematically to those objectives.

Teaching methodologies

We use the lecture method for introduction of theoretical concepts and participatory approach to reflection on the contents. These two methods are also used in solving exercises and discussing cases. The evaluation comprises an individual written mini-test and an individual written test.

Demonstration of the teaching methodologies coherence with the curricular unit's intended learning outcomes

All classes are theoretical and practical. The lecture method is used to introduce the theoretical concepts related to financial markets and products and the participatory method for reflection on the various aspects of portfolio management in different contexts. These methods are also used in problem solving and discussing cases, encouraging interaction with real situations. The individual mini-test and test seek to measure the capacity for reflection and exposition on themes; and the level of knowledge obtained about them and respective practical articulation.

Assessment methodologies and evidences

Continuous assessment:
The assessment of knowledge is constituted as follows:
• One Individual Test, on a date to be designated (T).
• Elaboration, presentation and discussion of a Work (constitution, management and disposal of a portfolio of financial assets) according to the respective group script, made up of 3 to 5 students, and the note can be individualized (TG).

Final grade = 0.50 x work grade + 0.50 x test grade

The student will obtain approval with a grade equal or superior to 10 values in both forms of evaluation. If the final grade of the test or work is less than 10 values, the student will have to make a final evaluation.

Bibliography

• Brandão, E. (2001), Finanças. Porto: Porto Editora. • Brealey, R., Meyers, S. C. e Allen, F. (2007), Princípios de Finanças Empresariais (8ª Ed.). Alfragide: McGraw Hill.

• Matos, J. P. (1992), Finanças Internacionais. Lisboa: Editorial Presença. • Menezes, H. C. (1995), Princípios de Gestão Financeira. Lisboa: Editorial Presença. • Mota, A. S. G. et al (1997), Gestão Financeira – Casos Práticos. Lisboa: CEMAF – Centro de Investigação de Mercados e Activos Financeiros. • Neves, J. C. (2002), Avaliação de Empresas e Negócios. Amadora: McGraw-Hill. • Pinho, C. S. e Tavares, S. (2005), Análise Financeira e Mercado. Lisboa: Áreas Editora. • Pires, C., (2006), Mercados e Investimentos Financeiros. Lisboa: Escolar Editora. • Ross, S. A., et al. (1995), Administração Financeira. São Paulo: Editora Atlas, SA