OVERVIEW

The course focuses on the advanced topics related to investments and financing decisions, both short- and long-term, the financial planning and risk and crisis management

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's.

AIMS AND LEARNING OUTCOMES

Knowing the objectives of the main firm financial decisions

Knowing the impact of ownership and governance structures of financial decisions

Learning to estimate the cost of capital of listed and unlisted companies and to evaluate investments

Learning how to prepare a financial plan and identify suitable sources to cover any financial need

Understanding the concept of risk and knowing the principles, methods and tools of Enterprise Risk Management

Learning the main techniques to identify a crisis situation

Learning how to use the financial data available in the main databases

Improving communication skills, social interactions, strategic thinking and project development

PREREQUISITES

Students are expected to have acquired, during the bachelor path, knowledge about:

capital budgeting techniques

cost of capital

financial structure decision

cash flow determination and analysis

They are also advised to have a refresher:

S. Ross, D. Hillier, R. Westerfield, J. Jaffe, B. Jordan, “Corporate Finance” 3/ed, McGraw Hill, 2018, capp. 3,6,10,15.

TEACHING METHODS

Lectures with examples

Applications and database use

Debate

Role playing

Project-based learning

Project work in group

Case Studies, Seminars and Workshop with Professionals

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak both with the instructor and with the Department’s disability liaison.

SYLLABUS/CONTENT

Corporate Governance, Value Maximization, and Sustainability Goals

Importance of corporate structures and governance

Conflicts of interest and self-regulation codes

Value maximization objectives for stakeholders

Financial Planning

Operating budgets

Forecasted income statement and balance sheet

Fixed capital investment plan: CAPEX

Working capital investment plan: working capital and treasury management

Financial plan

Measuring the Cost of Capital and Identifying the Optimal Financial Structure

CAPM applications

Alternatives to CAPM

Calculating Beta for listed and unlisted companies

Behavioral perspective

Cost of debt

Credit rating

Financing Decisions

Self-financing and dividend policy

Structure of the financial system and main theories behind financial structure choices

Features of traditional and alternative financing methods/instruments

Financing decisions and stages of the business life cycle

Enterprise Risk Management (ERM)

Risk classification

ERM objectives and phases

The CoSO framework (Committee of Sponsoring Organizations of the Treadway Commission)

Business Crisis

Definition of crisis and insolvency

Adequate organizational, administrative, and accounting structures

Early warning signs and timely diagnosis

Debt sustainability and the practical test for the feasibility of recovery

Recovery plans, restructuring agreements, and other out-of-court procedures

RECOMMENDED READING/BIBLIOGRAPHY

Slides and other materials provided by the lecturer

Damodaran A., Applied Corporate Finance, 4th Edition, Wiley

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

Calendario didattico | DIEC

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

For attending students:

Project work presentation

Written exam with multiple-choice questions

For non-attending students:

Written exam with multiple-choice questions, open-ended questions, and exercises

ASSESSMENT METHODS

Assessment Methods for Attending Students

Project Work Presentation

Students will be required to present, in groups, a project work (PW) to the instructor and the class. The project consists of solving five tasks based on a real-world case, designed to support learning through the practical application of the main theoretical topics covered in the course: analysis of corporate governance, financial planning, cost of capital estimation, identification of the optimal financial structure, and enterprise risk management.

The project work presentation is also intended to assess students' ability to use the technical language of the discipline, to discuss contents critically, and to respond to questions from both the instructor and the class.

Upon evaluation of the project work, Open Badges will be awarded.

Written Exam

Attending students will also take a written exam with multiple-choice questions, aimed at assessing their knowledge acquisition.

Assessment Methods for Non-Attending Students

Written Exam

Non-attending students will take a written exam including multiple-choice questions, open-ended questions, and exercises. The exam aims to evaluate both the knowledge acquired and the ability to apply it using critical and analytical thinking.

FURTHER INFORMATION

Ask the professor for other information not included in the teaching schedule