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CORPORATE FINANCE

CODE 73189
ACADEMIC YEAR 2018/2019
CREDITS 9 credits during the 3nd year of 8699 Economics (L-33) GENOVA
SCIENTIFIC DISCIPLINARY SECTOR SECS-P/09
TEACHING LOCATION GENOVA (Economics)
SEMESTER 1° Semester
PREREQUISITES
Prerequisites
You can take the exam for this unit if you passed the following exam(s):
  • Economics 8699 (coorte 2016/2017)
  • BUSINESS ADMINISTRATION 41125
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

Exam Board

LAURA NIERI (President)

BARBARA ALEMANNI

MARCO DI ANTONIO

FRANCESCA QUERCI

LESSONS

TEACHING METHODS

  • Lectures
  • Case Studies
  • Seminars and Workshop with Professionals 
  • Assignments using Aulaweb platform

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

Date Time Location Type Notes
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.