Financial Management

Recommended Prerequisites

Not applicable.

Teaching Methods

The proposed topics will be analyzed through a combination of lectures and practical classes. Class lectures will cover concepts and methodologies accompanied by illustrative examples. The practical class follows a flipped classroom methodology. This methodology assumes that the student prepares the materials before each class. The class starts with a short quiz to assess the assimilation of knowledge based on the recommended/provided materials. Then, it turns to the specific themes programmed for each class, and the doubts that the students have raised will be clarified.  

Learning Outcomes

 Overall objectives:

This course aims to provide the essential guiding principles that should keep a balanced and feasible financial situation, both in short and medium/long-term goals.

Specific objectives and competencies (in brackets are the relative weight of each ILO of the course). The ILO iii) contributes 25% to ILO1 of the Programme, and the ILOs i), ii), and iv) contribute 75% to ILO3 of the Programme.

i) Identify the key issues that involve working capital management (30%).

ii) Evaluate the impact of the main strategic decisions traditionally assigned to the financial function of the (35%) companies on their value, with a particular focus on capital structure decisions and dividend policy.

iii) Acquire the tools necessary to elaborate and implement financial planning (25%).

iV) Distinguish the different types of risk and recognize the principal ways to manage it (10%).

Generic competencies:

Capacity of analysis, synthesis, and communication skills, both written and oral.     

Work Placement(s)

No

Syllabus

1. Introduction: An overview of financial management

2. Short-term financial management

3. Strategic financing decisions

4. Dividends policy

5. Financial planning

6. Enterprise financial risk management.  

Head Lecturer(s)

Mário António Gomes Augusto

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

Brealey, Richard; Stewart, Myers; Allen, Franklin; Edmans, Alex (2022), Principles of Corporate Finance, 14ª Ed., McGraw-Hill.

Brigham, Eugen. F.; Ehrhardt, Michael C. (2023), Financial Management: Theory and Practice, 17ª Ed., South-Western Cengage Learning.

Martins, António; Cruz, Isabel; Augusto, Mário; Silva, Patrícia Pereira e Gonçalves, Paulo Gama (2016), Manual de Gestão Financeira Empresarial, Escolar Editora, Lisboa.

Mota, António Gomes; Barroso, Clementina Dâmaso; Nunes, João Pedro; Oliveira, Luís; Ferreira, Miguel Almeida; Inácio, Pedro Leite (2025), Finanças da Empresa: Teoria e Prática, 7ª Ed. Revista, Edições Sílabo, Lisboa.