Corporate Finance

  • Total class time: 60 hours.
  • Unit: Centro Universitário FECAP Liberdade (Av. da Liberdade, 532).
  • Times: Saturday from 14:00 to 17:20, starting August 19th until December 9th.
  • Value: Students and Alumni: R$800,00
  • External Public: R$1.600,00
  • Professors: Joelson Sampaio and Vinicius Brunassi

The value may be paid in up to 4 x (8 x for FECAP students) without interest on the credit card (for the payment on the credit card, it is necessary to attend to the Financial Department of Fecap).

The student who is approved in the discipline and in the future will substitute some discipline in your curricular matrix, will have the amount paid for this discipline reimbursed, corrected according to the financial indexes used by FECAP.

 

 

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PROGRAM OVERVIEW

Our course on corporate finance provides a look at the decision making process and a basic understanding of the financial decisions for corporations to include (i) investment decisions, (ii) financing decisions, and (iii) payout to shareholders. It aims to understand:

  1. How corporations make investment decisions?
  2. Once they decided to go ahead, how the assets should be financed?
  3. Once the project/assets start to pay off, how shareholders should be paid out?
  4. Why and how do we compute the financial and economic ratios?
  5. What is working capital management?

 The insights gained during the course will provide participants with the appropriate framework for investigating key financial decisions.

 

PREREQUISITES

Basic courses in Microeconomics and Statistics are prerequisites. Introductory accounting is also needed but may be taken concurrently.

 

COURSE OUTLINE (Topics Covered)

First Module (Part A): Prof. Vinicius Augusto Brunassi Silva

Session 1:  Introduction: How corporations finance themselves

Session 2: Time value of money: an introduction to payback rule, IRR and net present value

Session 3: Capital Budgeting: Investment decisions, cash flow forecasting and alternatives to NPV (Profitability Index, Equivalent Annual Cost, Break-Even Analysis, Sensitivity Analysis, Scenario Analysis, Decision Tree, Monte Carlo Simulation and Real Options)

Session 4: Risk and Return: Basic of Portfolio theory

Session 5: Cost of Capital: Determining the cost of equity capital, understanding and evaluating the firms weighted average cost of capital (WACC)

Session 6: Valuation: Free cash flows, valuing stocks and business valuation

Session 7: Capital Structure (A): Risk and its component parts, Miller and Modigliani propositions

 

Second Module (Part B): Prof. Joelson Oliveira Sampaio

Session 8: Capital Structure (B): Financial flexibility, financial distress, impact of dividend policy

Session 9: Issuing Securities: Bond valuation

Session 10: Payout: Dividends and share repurchase

Session 11: Working Capital Management: Short-term investment management, short-term financial management, inventory management and cash flow synchronization.

Session 12: Financial Analysis: Economic and Market Value Added.

Session 13: Corporate Governance: procedures for reconciling the conflicting interests of stakeholders.

Session 14: International Finance: Currency volatility and exchange rate determination, translation and economic exposure, hedging instruments

 

METHODOLOGY/ APPROACH

“Hands-on” (both lectures and exercises). The main reference for this course will be the packet of slides and class notes. Participants are introduced to the tools and techniques used by leading business organizations to make value enhancing investment and financing decisions.

 

GRADING PROCEDURES

Class work will be weighted according to the following table.

Schedule Contents Evaluation – Grading

N1

First Module (Part A): Prof. Vinicius Brunassi

N1:30%

N2

Second Module (Part B): Prof. Joelson Sampaio

N2:30%

PO

(Part A + Part B) Prof. Vinicius and Prof. Joelson

PO: 40%


REFERENCES

  • Berk e De Marzo, (B.M.) Corporate Finance: The Core, 3nd Edition. Prentice Hall, 2010.
  • Brealey, Myers and Allen, (B.M.A.) Principles of Corporate Finance, The Core, 12nd Edition. McGraw-Hill,2015.

 

FACULTY

Joelson Oliveira Sampaio is a professor of finance and coordinates the Executive MBA program in finance at FECAP. He holds a PhD in economics from FEA/USP and a PhD in finance from FGV. He publishes widely on a broad range of topics, including: corporate finance; corporate governance; private equity and investments.

Vinicius Augusto Brunassi Silva is a professor of finance and coordinates the Finance Institute at FECAP. He holds a PhD in finance from FGV and carried out a Sandwich Doctorate in Finance at University of California, Berkeley. He publishes widely on a broad range of topics, including: corporate finance; reorganization and financial restructuring; personal finance and investments.