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Department of Business Administration

Topics in Corporate Finance  (Finanças Empresariais - Mestrado em Gestão - Coimbra, 2009-2010)

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Course schedule: Mondays to Thursdays, as listed in the course outline.


Goals

Students taking this course should expect to learn the nature and purposes of financial management. They will gain skills in investing techniques and financial management. They will learn, through seminar discussions and a hands-on project on financial forecasting and selection of financing products. In the end the goal is to apply the state-of-the-art techniques often used by finance directors and investment bankers.

Instructor

Prof. António Marques-Mendes
Office nr.: 417. Tel +351-239-790-548; Fax +351-239-790-413
Web site   Topics in Corporate Finance • E-mail student@marques-mendes.com

Lectures and seminars take place in the rooms assigned by BEDEL.

Tutorials and appointments are available by prior booking through email

Details on Marques Mendes' current research interests and availability to supervise MBA, Msc and PhD thesis can be found in his personal web page.

Pedagogy

The course employs cases and problems as well as classroom lectures and discussions. We will make use of international as well as domestic examples. Each student will be expected to participate actively in class discussions. A written project will be due by the end of term, to be discussed during an oral exam.

The Course on the Internet

We will make use of the Web for resource material and communication. Indeed this course outline itself will change: the definitive version is at  our Web site. All students must have an email address and Web access. Lecture materials, as available, can be downloaded from the Web. (In some cases you will need the Adobe Acrobat reader, Version 6 or higher, available free from Adobe's World Wide Web Site http://www.adobe.com/prodindex/acrobat/readstep.html.). To access the course site, use tcf2009 ID, and your 10-digit password (ask me to get it). Students are encouraged to exchange their own material by posting it to a shared file space.

To keep up with the world of corporate finance visit regularly the following sites:

Text and cases

Richard Brealey and Stewart Myers, Principles of Corporate Finance, McGraw-Hill, New York. (Latest edition)

Mark Largan, International Corporate and Investment Banking - Practice and Law, Institute of Financial Services, Canterbury, UK. (Latest edition)

Students should have read the assignments before coming to class. Material covered in the assigned textbook readings will generally not be repeated in class. Rather, class time will be devoted to lecture and case discussion, applying the material covered in the readings.

Grading (for students with a minimum attendance of 60%)


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Course Outline

(Links to the readings may be updated as we proceed)

Date (Weeks) Topic  Papers & Chapters for Discussion Other Readings, and Materials on the Web Cases/Assignments
22-25/9/09   Introduction to students and mission statement: "The role of Universities and the job market" or "In praise of market capitalism - The threats of state capitalism and financial crisis"

Introduction to Topics in  Corporate Finance








Consult Wikipedia on relevant keywords:
- State capitalism, financial crisis, etc.







Syllabus for a BSc in Business Administration













Class registration:
register for class attendance, for working groups on insurance, research topics and select a listed company to monitor during this course
28/9-2/10/09 1 Accounting and Financial Analysis as the basis for financial management Objecto e objectivos da contabilidade (Chaps. 2.2 e 3.4)

Financial Reporting
Encerramento de contas (Caiado & Madeira, pp.104-169)
Accounting resources

SOME KEY DIFFERENCES BETWEEN IFRSs AND US GAAP
Collective assignment:  Q&A session and case studies in accounting practices and standards: Mosteiro de Arouca e PT (2007) and PT (2006) (Form 20F)
6-9/10/09 2 The evolving nature of Finance Departments and the role of CFOs O papel do Gestor Financeiro (Chap. 1)

Menezes (pp.34-39)

How CFOs are managing changes in roles and expectations

Toward a Leaner Finance Department

Flabby or Fit? A new survey of CFO readers measures finance departments

 

Collective assignment: search web for  Finance Department organigrams, Job Offers in Finance and Personal Profiles

12-16/10/09 3 Banking Relationship Management

Investment Bankers: Friends or foes?

Turnaround financing during credit crunches
Banker-customer relationship (Liscombe pp. 108-122)

Structure of the industry

The edge

Guide to Financing for Distressed Companies

A Love-Hate Relationship

Managing Banking Relationships

The structure of financial markets and its participants

Key business areas

 

Collective assignment: The Business of Investment Banking - case studies: ES Investment; CaixaBI; Goldman Sachs; UBS

19-23/10/09

4 Financial Planning and Modeling Abordagens ao planeamento financeiro (Chap. 28)

Making Planning Relevant

Collective assignment: Prepare 3-year financial Projections for a listed company using Brealy's (Brealey 2) model or ANJE's  (using data from the company published accounts, Euronext, Hoovers or Reuters). Recommendations to assess the results
26-30/10/09         Collective assignment: Prepare 3-year financial Projections for a listed company using Brealy's (Brealey 2) model or ANJE's  (using data from the company published accounts, Euronext, Hoovers or Reuters). Recommendations to assess the results
2-6/11/09         Collective assignment: Prepare 3-year financial Projections for a listed company using Brealy's (Brealey 2) model or ANJE's  (using data from the company published accounts, Euronext, Hoovers or Reuters). Recommendations to assess the results
9-13/11/09 5 Financial Structuring, the risks of using risk capital and the traps of government subsidies

The Choice between Market Failures and Corruption

Government Failure vs. Market Failure: Microeconomics Policy Research and Government Performance
Government failure
Case study: The shareholders agreements imposed by state-owned risk capital firms in Portugal
16-20/11/09
6
Corporate restructurings (Acquisitions & Divestitures) Brealey (chap. 33)
Comparing Acquisitions and Divestitures
Taxation of Corporate Reorganizations
Regime Fiscal das Fusões de Sociedades
The Choice of Going Public; Spin-offs vs. Carve-outs
Individual reporting: describe the recent acquisitions and divestitures (spin-offs, etc.) in your selected company.
23-27/11/09 7 Corporate restructurings (Recapitalizations) Blatz, et al pp. 3-22
Estudo de Insolvências e Constituições de EmpresasPORTUGAL 2009 / 2008
ASPECTOS RELEVANTES NO PROCESSO DE INSOLVÊNCIA
Yell - Debt refinancing and equity offering
Turnaround Financing Alternatives
Summer 2009 issue of The Journal of Private Equity
Group assignment: Discuss the Wind AG restructuring case study.(Nordex AG)

USA de-listed companies
30/-4/12/09 8 The selection of financial instruments and services: insurance and risk management Current asset management
Brealey (Chaps. 18 e 31) Kim (Chap. 14)

Business Insurance

 

GETTING A HEAD FOR YIELDS

Portugal

Group assignment: Compare the solutions offered by insurance brokers and insurance companies to cater for the needs of a small company exporting to high risk countries (e.g. Angola  and Venezuela).
7-11/12/09 9 Agency problems and corporate governance Stock buybacks: the rules
Warren Buffett on:
Stock Options
 and
Stock buy-backs

Relatório CMVM sobre Governo das Sociedades
Collective assignment: Discuss the Stock buy-backs pros and cons for companies like PT; Unilever; Expedia; Microsoft.(note check the latest SEC filing 10-Q)
14-18/12/09 10 Earnings quality and accounting shenanigans
Why do companies use creative accounting?
Checklists of creative accounting practices
Menezes (Pags. 403-410)

Everything You Need To Know About Earnings

Creative accounting

The Earnings Game

Trick or treat - how to detect accounting tricks

Earnings season: A time to be careful
Accounting Shenanigans on the Cash Flow Statement

Individual reporting: describe potential cases of creative accounting used by the company that you monitored during the course.

Atendimento em Janeiro:   Das 15 às 17 horas Dias: 4; 6; 11; 13; 18; 20    
Exame 1a. chamada (5/1/2010)

Exame da 2a. chamada (3/2/2010)



  Entrega dos trabalhos


1/2-Hour Final Oral Exams
Exames dias: 27/1 - 2/2/2010
Lista dos alunos elegíveis para avaliação continua


Horário das Orais

NOTAS 2009-2010

List of Research Topics for Class A students) 

 

Sample quiz page for oral examinations

Data limite para entrega dos trabalhos 8/1/2010 (Nota: as versões em papel devem ser entregues na portaria ou no gabinete do docente. Os anexos em excel devem ser enviados para o endereço: trabalhos_tcf2009@marques-mendes.com com o nome do aluno no assunto. 


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Summary of Course Topics

 


 
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