OVERVIEW

The course introduces the student to corporate financial decisions and provides the basic knowledge and methodologies necessary to identify the choices that are able to create value for the company.

AIMS AND CONTENT

LEARNING OUTCOMES

The teaching aims to develop the institutional contents relating to the tasks of the finance function within a company, with a careful focus on both the most recent developments in theory and the operational and application aspects. In particular, the criteria and methodologies for assessing company investments and the criteria associated with financing choices and the processes for defining the financial plan to cover loans are developed.

AIMS AND LEARNING OUTCOMES

At the end of the course the student:

• is able to determine the cash flows of an investment project;
• knows and knows how to apply the main techniques for evaluating investment projects;
• has in-depth knowledge of the risk-return relationship, the principles of the Modern portfolio Theory and knows how to estimate the cost of equity;
• knows the main theories on the financial structure of the company; understands the determinants of the firm's financing decisions; is able to estimate the value of the indebted company.

PREREQUISITES

Knowledge related to the courses of Financial Mathematics, Accounting and Statistics are considered a highly recommended prerequisite.

The Business Economics exam is preparatory for this course.

TEACHING METHODS

Lectures with examples

Tutorials

Case study analysis

Self-assessment test

Seminars and Workshop with Professionals

SYLLABUS/CONTENT

The Corporate Finance course will be divided into 3 modules:

Module I - Capital Budgeting

• Investment projects: definition
• Determination of cash flows
• The main investment evaluation criteria
• Investment decisions in conditions of scarcity of resources
• Project analysis: scenario analysis, sensitivity analysis and real options

Module II - Cost of capital, risk and return

• The quantification of risk and return
• Portfolio theory
• Capital Asset Pricing Model
• Estimate of the cost of capital

Module III - Financing decisions

• Sources of funding
• Financial structure: the fundamental principles
• Debt design and limits on the use of debt
• Self-financing and dividend policy

RECOMMENDED READING/BIBLIOGRAPHY

Book

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

Capp. 1, 4, 6, 7, 8  (Module I)

Capp. 9,10,12 (Module II)

Capp. 14, 15, 16 e 18 (Module III)

TEACHERS AND EXAM BOARD

Exam Board

ROSALIA SANTULLI (President)

MARCO DI ANTONIO

FRANCESCA QUERCI

LAURA NIERI (President Substitute)

LESSONS

LESSONS START

Thursday February 15th, 2024

EXAMS

EXAM DESCRIPTION

Written exam

Exam schedule