Subject: Financial Theory

Scientific Area:



40 Hours

Number of ECTS:




Overall objectives:

0 - Its program is designed to offer a deepening of the whole issue of Financial Theory, in an always critical approach to its main chapters and issues. At the end of the course unit students should be able to:
1 - Understand the objectives of business finance and its main theories.
2 - Analyse and evaluate investment decisions.
3 - Analyse and evaluate financing decisions and capital structure.
4 - Analyse, evaluate and explain hedging strategies with options.
5 - Analyse and evaluate shareholder remuneration decisions.
6 - Reflect on corporate finance objectives.


1 - Introduction.
2 - Ownership and Control of the Company and the Companies Market.
3 - The Agency Theory.
4 - The Efficiency of Markets.
5 - The Assessment of Financial Assets.
6 - Theory of Options.
7 - Investment Decisions.
8 - Theory of Capital Structure.
9 - The Dividend Policy.


Berk, J. B., P. M. DeMarzo , 2016 , Corporate Finance , Person
Copeland, Thomas E., J. Fred Weston e Kuldeep Shastri , 2005 , Financial Theory and Corporate Policy , Pearson-Addison Wesley
Ross, S. A., R. W. Westerfield, J. F. Jaffe, B. D. Jordan , 2018 , Corporate Finance* , McGraw-Hill

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
All program exposure is theoretical. However, there will be a permanent concern to establish bridges with concrete reality, with real world cases and problems, in order to demonstrate the pertinence, timeliness and usefulness of all concepts, formulations and models offered by Financial Theory today. The students will always be asked for a direct intervention in the discussion of theoretical problems and their practical implications. In addition, the organization of the class will be promoted in groups, each of which will produce a theoretical work on a theme to be attributed, which will be opportunely exposed to the class. The continuous assessment method will be followed, based on the assessment of the work carried out by the students throughout the course, both in the form of theoretical work and its exposition, as well as in the form of participation in classes. However, an individual final exam of knowledge assessment will be held. Evaluation: Written works: 50%; Frequency: 50%.