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CORPORATE FINANCE

CODE 73189
ACADEMIC YEAR 2021/2022
CREDITS
  • 9 cfu during the 3nd year of 8699 ECONOMIA E COMMERCIO(L-33) - GENOVA
  • 6 cfu during the 3nd year of 8697 ECONOMIA AZIENDALE(L-18) - GENOVA
  • SCIENTIFIC DISCIPLINARY SECTOR SECS-P/09
    TEACHING LOCATION
  • GENOVA
  • SEMESTER 2° Semester
    PREREQUISITES
    Prerequisites
    You can take the exam for this unit if you passed the following exam(s):
    • Economics 8699 (coorte 2019/2020)
    • 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 main objective of the course is to provide the conceptual background for corporate financial decisions from the point of view of corporate value creation. Students are expected to develop skills for making corporate investments and financing decisions. Topics include valuation techniques and capital budgeting; risk and return; capital asset pricing model; corporate capital structure and financial policy.

    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.

     

    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.

    In consideration of the current COVID-19 emergency, if restrictions persist and traditional face-to-face classrooms teaching is not be possible, blended learning methods will be adopted and the whole course will be available also online. More details will be provided to the students at the beginning of the semester via AulaWeb.

     

    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

    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

    ROSALIA SANTULLI (President)

    LAURA NIERI

    LESSONS

    LESSONS START

    Lessons start in the second semester on February 15, 2022.

    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
    16/12/2021 10:00 GENOVA Scritto
    13/01/2022 10:00 GENOVA Scritto
    13/01/2022 10:00 GENOVA Scritto
    03/02/2022 10:00 GENOVA Scritto
    03/02/2022 10:00 GENOVA Scritto
    11/05/2022 15:00 GENOVA Scritto appello straordinario riservato esclusivamente ai laureandi a.a. 2020/21
    11/05/2022 15:00 GENOVA Scritto appello straordinario riservato esclusivamente ai laureandi a.a. 2020/21
    11/05/2022 15:00 GENOVA Scritto appello straordinario riservato esclusivamente ai laureandi a.a. 2020/21
    01/06/2022 09:30 GENOVA Scritto
    16/06/2022 09:30 GENOVA Scritto
    12/07/2022 08:30 GENOVA Scritto
    09/09/2022 16:00 GENOVA Scritto

    FURTHER INFORMATION

    Students who fail the exam can repeat it with no limitations.

    However if the final score in below 16/30 the exam cannot be repeated in the next date.