|SCIENTIFIC DISCIPLINARY SECTOR
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
The course introduces the students to the principles of corporate finance. By combining a rigorous theoretical approach with a more practical approach, the course has three main issues, i.e. financial analysis, investment evaluation and capital budgeting.
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.
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.
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.
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
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
- 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
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
LAURA NIERI (President)
MARCO DI ANTONIO
Lessons start in the second semester on February 15, 2022.
Final written exam.
Students that attend lectures regularly may choose the 'continuos valuation method' that implies 3-4 assignments and an intermediate exam.
The exam includes:
- multiple-choices questions
- true/false questions
- open-ended questions
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.