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 introduces the students to the principles of corporate finance. By combining a rigorous theoretical approach with a more practical approach, the course focuses on two main issues, i.e. investment evaluation and capital budgeting, and firm financial structure and financing decisions.

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

• analyse the relationship between strategic decision making and corporate financing decisions

• understand wihch techniques can be used to evaluate a project 

• calculate cost of equity and the cost of cpitale

• understand the main financing sources and instruments

• understand the drivers of financing decisions.

PREREQUISITES

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

TEACHING METHODS

The course entails different teaching methods such as Lectures, Case Studies, Seminars and Workshop with Professionals, Assignments using Aulaweb platform, Auto evaluation tests.

SYLLABUS/CONTENT

Parte I - Investment Project Evaluation

• The Time Value of Money and Interest Rates;
• 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

RECOMMENDED READING/BIBLIOGRAPHY

Main textbook

• 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

Exam Board

LAURA NIERI (President)

FRANCESCA QUERCI (President Substitute)

LESSONS

LESSONS START

Lessons start in the firts semester on September 20

EXAMS

Exam schedule