Corporate Financial Strategy

Scholar Year: 2023/2024 - 2S

Courses

Head Teacher Responsability Paulo Manuel Monteiro Alexandre Head

Weekly workload Hours/week T TP P PL L TC E OT OT/PL TPL O S Type of classes 1,6 Lectures Type Teacher Classes Hours Theoretical-practical Totals 1 1,60 Paulo Alexandre   2,00

Teaching language

Portuguese

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

The program was developed to introduce and systematize some of the tools that enable the identification and preparation of financial strategies. In particular, the objectives of the course are to understand the role of financial strategy in the global strategy, analyze and evaluate financial decisions of short and long-term, know and understand the strategic value of disinvestment and bankruptcy options, develop a financial strategy and define the respective financial policies. The skills developed are to contribute to understanding the role of investment and financing decisions in the context of organizational management, contribute to the understanding of the financial evaluation of decisions.

Syllabus

1. FINANCIAL STRATEGY ON GLOBAL STRATEGY
1.1. Tasks, Objectives and Limits of the Financial Function

2. LONG TERM FINANCIAL DECISIONS
2.1. Investments
2.1.1. Investment Decisions
2.1.2. Investment Decisions based on Net Present Value Criterion
2.1.3. The Cost of Capital
2.1.4. Sensitivity Analysis and Monte Carlo Simulation
2.1.6. Real Options in the Evaluation Investment Decision Process
2.2. Financing
2.2.1. Capital Structure Definition
2.2.2. Capital Structure Determinants
2.2.3. Internal Funds (Self Financing)
2.3. Corporate Restructuring
2.3.1. The Decision Process of Restructuring
2.3.2. The Case of Mergers and Acquisitions
2.3.3. Evaluation Business Methods

3 - Companies valuation methods

4. FINANCIAL STRATEGY AND POLICIES
4.1. Financial Equilibrium and Profitability
4.2. Funding Strategies

5. DISINVESTMENT AND BANKRUPTCY
5.1. Understanding Disinvestment and Bankruptcy
5.2. Disinvestment Determinants
5.3. Bankruptcy Determinants

6. DECISÕES DE FINANCIAMENTO DE MÉDIO LONGO PRAZO
6.1. Capital Structure Definition and Capital Structure Determinants
6.2. Strategic and Financial Policies
6.2.1. Financial Equilibrium and Profitability
6.2.2. Funding Strategies

Demonstration of the syllabus coherence with the UC intended learning outcomes

This curricular unit course requires that students are trained and show good skills to use the techniques and
methodologies for evaluating strategic financial decisions. Thus, the programmatic content of this unit seeks
to familiarize students with different methodologies and techniques used in decision-making of the main
financial policies: investment and financing. After understanding the role of the financial strategy on the global
strategy, the following points of the program seek to lead students to learn and reflect on the process of
investment decision (to study the importance of the variable cost of capital and the key variables of the
decision) and financing (choose the sources and definition of financial structure). The syllabus also includes
the study of the restructuring process (with a focus on mergers and acquisition, disinvestment and
bankruptcy) to analyze the importance of this process to maximize value.

Teaching methodologies

Use of expository method for introducing theoretical concepts; and the participatory method for reflection on the contents.
Use the participatory method for analysis, discussion and problem solving.

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

The program was developed to promote the financial knowledge concerning the two major financial policies:
investment and financing. Thus, the lessons of this unit are divided into two stages: so, first, mainly theoretical
and second, predominantly practical a second time. The theoretical component seeks to provide students with
the knowledge level of "know-Know", which has to appeal to the understanding process, thus through the
exposition method seeks to present the concepts, techniques and methodologies related to the decision
making process of investment and financing, including the restructuring decision process. Using the
participation method, we seek to lead students to reflect on the content of the concepts and about the different
techniques and methodologies. This moment in the class is based on the time of exposure of a subject and
students' participation in order to facilitate the learning process through the review, the exemplification and
the response to the issues / questions of the teacher and students and to allow a clarification / understanding
of the concepts, a promotion of reflection and structuring of the elements of know-know.
The "know-how" assumes a relevant role in the curricular unit objectives for consolidation of knowledge, thus
the expositive method is used to frame the exercises and cases. The aim is that students can identify the
concepts, techniques and methodologies needed for each situation. Using participatory approach is intended
to lead students to apply the background to specific situations. It seeks to operationalize the theoretical
component in order to consolidate the knowledge. In the theoretical part, using the knowledge acquired in the
1st cycle course and others financial curricular units, is presented new techniques and methodologies of
investment projects and financing evaluation, as well as, the firms restructuring process. In the practical
component students are oriented to applications of these elements in concrete situations, analyzing the results
in order to develop their capacity for use this elements, skills analysis and deepening the acquired knowledge

Assessment methodologies and evidences

Individual written test or examination
If the final grade of the continuous assessment is less than 10 values, there will not be approve.

1) Regular Season | 1st season

2) Appeal Season | 2nd season

3) Special Season | 3nd season

Attendance system

The frequency of classes is mandatory requirement for students who opt for regular season.
It is understood as a frequency, a minimum attendance of 2/3, of the total contact hours, excluding the evaluation moments

Main Bibliography

Complementary Bibliography