MBA Católica Finance - 2 Term 2005/2006 Prof. Nuno Fernandes

Faculdade de Ciências Económicas e Empresariais
MBA Católica
Finance - 2nd Term 2005/2006
Prof. Nuno Fernandes
I. Course Objectives
The purpose of this course is to acquire an overall understanding of corporate financial

management. At the end of the course, you should be able to:
Evaluate investment projects
Value companies
Determine the project-specific price of risk for investment projects
Understand the relationship between capital structure and the cost of capital
The topics fit into six broad areas:

(1) Fixed-Income Securities: Bond valuation, risk-free rate, term structure of interest rates,
interest rate risk
(2) Equity Securities: Stock valuation. Fundamental and Relative Analysis.
(3) Project Valuation: Understand the key variables in assessing value creation – Cash Flows,
Selection Criteria, Project Interactions
(4) Relationship between Risk and Return: Implications for the Cost of Capital
(5) Financing Policy: How it influences Value and the Cost of Capital
(6) Derivative Securities: Options and Futures
(7) Market Efficiency
After this course, you will be able to value almost any asset, project or company. To get there,
we will take a hands-on approach. It is my belief that the best way to learn is by doing it. Thus,
we will have several exercises and real-data projects throughout the term, to make sure the
main points are well understood.
II. Course Materials
Textbook: Brealey & Myers - "Principles of Corporate Finance", 8th edition, McGraw Hill, 2006.
Class Notes – Website
Problem Sets – Website
Additional reading material – Website
Financial Calculator – Useful, but not required.
III. Class Web page
You should check the web page regularly for updates, course materials, additional readings,
exercises and messages.
I will post the slides of each session online. This way you can concentrate on the discussions,
and don’t have to worry about taking notes of every slide. Additional readings and exercises
will also be posted in the web page.
IV. House Rules
This is a particularly demanding course (based on previous students’ comments), and your
payoff from this course is directly proportional to the effort you put in. You are expected to be
prepared for class and participate in the discussions. Preparation includes reading all the
required readings for each class, as well as handing in all exercises. Please do so, and your
experience will be greatly enhanced.
Please bring and use your name card in every single class, as this will help me learn your
names.
V. Grading
Your grade will be a weighted average of the following:

1. Financial Math Test: 10%
2. Midterm Exam: 35%
3. Final Exam: 40%
4. Projects + Class Participation: 15%
VI. Contact Information
Office hours for this course are on Mondays, from 14.00 to 15.30.
Feel free to contact me with any doubts/problems, or to schedule an appointment outside these
hours.
Professor Nuno Fernandes

Office: 5321
Email: [email protected]
Web Page: http://www.nunofernandes.com
VII. Short Bio

Nuno Fernandes is an Assistant Professor of Finance at Universidade Católica Portuguesa
(Lisbon). Prof. Fernandes received his Ph.D. degree in 2003 from IESE Business School in
Barcelona. He was a Visiting Scholar at Columbia Business School (New York). In 2004 he was
awarded the AEFIN Prize for the Best Doctoral Dissertation in Spain for the years 2000/2003.
Prof. Fernandes´s principal areas of academic and research activity include international
financial markets, emerging markets, cross-listings, corporate governance and the effects of
firm disclosure. He has published papers in various professional journals in these fields and his
work is regularly presented at leading finance conferences.
VIII. Course Content – Tentative

Class Date Topic Chapters B&M
Introduction to Financial Markets and Corporate
1 04-Jan Finance 1,2,3
2 04-Jan Present Values and Investment 1,2,3
3 09-Jan Bond Markets and Term Structure 4.1, 23.1, 23.2, 23.3
4 16-Jan Bond Markets and Term Structure 23
5 18-Jan Valuation of Assets: Stocks 4
8 30-Jan Project Valuation: Relevant Cash Flows 6
9 01-Feb Free Cash Flow and Project Valuation 6
10 06-Feb Project Valuation: Interactions 5, 6
11 08-Feb Capital Budgeting Criteria, NPV and Alternative Rules 5, 6
12 13-Feb Risk and Return in Financial Markets 7
13 15-Feb Portfolio Theory 8
14 20-Feb Portfolio Theory and the Capital Asset Pricing Model 8, 9
Equilibrium Models in Financial Markets: CAPM and
15 22-Feb APT 8, 9
16 27-Feb Discount rate in Project Valuation 9, 11
17 01-Mar Financing Policy 14, 17, 18
18 06-Mar Value and Capital Structure 18, 19
Interactions between Financing and Investment
19 08-Mar Policies 19
20 13-Mar Sensitivity Analysis and Stock Valuation 4, 10, 19
21 15-Mar Introduction to Derivatives Markets. Options 20, 21
22 20-Mar Option Valuation 20, 21
23 22-Mar Option Valuation 20, 21
24 27-Mar Market Efficiency 13

MBA Católica Finance - 2 Term 2005/2006 Prof. Nuno Fernandes

Uploaded by

Copyright:

Available Formats

MBA Católica Finance - 2 Term 2005/2006 Prof. Nuno Fernandes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MBA Católica Finance - 2 Term 2005/2006 Prof. Nuno Fernandes

Uploaded by

Copyright:

Available Formats

Faculdade de Ciências Económicas e Empresariais

The purpose of this course is to acquire an overall understanding of corporate financial

The topics fit into six broad areas:

II. Course Materials

III. Class Web page

IV. House Rules

Your grade will be a weighted average of the following:

VI. Contact Information

Professor Nuno Fernandes

VII. Short Bio

VIII. Course Content – Tentative

You might also like