CODE 73189 ACADEMIC YEAR 2018/2019 CREDITS 9 cfu anno 3 ECONOMIA E COMMERCIO 8699 (L-33) - GENOVA SCIENTIFIC DISCIPLINARY SECTOR SECS-P/09 TEACHING LOCATION GENOVA SEMESTER 1° Semester PREREQUISITES Propedeuticità in ingresso Per sostenere l'esame di questo insegnamento è necessario aver sostenuto i seguenti esami: Economics 8699 (coorte 2016/2017) BUSINESS ADMINISTRATION 41125 2016 TEACHING MATERIALS AULAWEB OVERVIEW Corporate Finance is about companies, investors, and their interaction in financial markets. Essentially, companies make decisions (how to raise capital, how to invest that capital, …) and investors react to those decisions by bidding the company’s stock and bond prices up or down. During this course we will look at this interaction from the point of view of both companies and investors, with a special emphasis on companies. AIMS AND CONTENT LEARNING OUTCOMES The course aims at explaining how to use financial theory to solve practical problems concerning corporate finance. In details the course analyses capital budgeting techniques AIMS AND LEARNING OUTCOMES After studying this course, students should be able to: identify the key themes in corporate finance explain the role of finance in an organisation explain and analyse the interrelationship between finance and governance analyse the relationship between strategic decision making and corporate financing decisions evaluate a project using different techniques calculate cost of equity using Capital Asset Pricing Model understand the main drivers of financing decisions. TEACHING METHODS Lectures Case Studies Seminars and Workshop with Professionals Assignments using Aulaweb platform SYLLABUS/CONTENT Parte I - Investment Prject Evaluation The Law of One Price and Financial Decision Making The Time Value of Money and Interest Rates; Valuing Bonds and Stocks Investment Decision Rules Fundamentals of Capital Budgeting Valuing Parte II- Cost of Equity Capital Markets and the Pricing of Risk Optimal Portfolio Choice and the Capital Asset Pricing Model Estimating the Cost of Capital Parte III - CAPITAL STRUCTURE Capital Structure in a Perfect Market Debt and Taxes Financial Distress, Managerial Incentives, and Information Capital Budgeting and Valuation with Leverage RECOMMENDED READING/BIBLIOGRAPHY S. Ross, D. Hillier, R. Westerfield, J. Jaffe, B. Jordan, “Corporate Finance” 2/ed, McGraw Hill, 2015. Alternatively or in addition: R. A. Brealey, S. C. Myers, F. Allen, S. Hill, “Principi di Finanza Aziendale”, McGraw Hill , 2015 J. Berk, P. DeMarzo, “Finanza aziendale 1”, Pearson, 2011 (3° edition) TEACHERS AND EXAM BOARD LAURA NIERI Ricevimento: Office hours are published on aulaweb course page at the beginning of the course For other hours please contact the teacher via email. Always check Aulaweb news for update and changes Exam Board LAURA NIERI (President) BARBARA ALEMANNI MARCO DI ANTONIO FRANCESCA QUERCI LESSONS LESSONS START 1st Semester Class schedule CORPORATE FINANCE EXAMS EXAM DESCRIPTION Final written exam. Students that attend lectures regularly may choose the 'continuos valuation method' that implies 3-4 assignments and an intermediate exam. ASSESSMENT METHODS The exam includes: multiple-choices questions true/false questions open-ended questions problems Exam schedule Data appello Orario Luogo Degree type Note 10/01/2019 10:30 GENOVA Scritto 22/01/2019 10:30 GENOVA Scritto 13/06/2019 10:00 GENOVA Scritto 27/06/2019 10:00 GENOVA Scritto 11/07/2019 10:00 GENOVA Scritto 12/09/2019 10:00 GENOVA Scritto FURTHER INFORMATION Students attending this course are required to have a thorough understanding of Business administration. They should also have a good knowledge of Financial mathematics and Accounting.
