The teaching unit 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.
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.
At the end of the teaching unit, the student:
Is able to determine the cash flows of an investment project based on the financial data provided. Assessment criteria: quantitative analysis skills, correct use of terminology.
Can apply the main investment appraisal techniques to proposed business cases. Assessment criteria: quantitative analysis skills, correct use of terminology.
Has an in-depth understanding of the risk-return relationship, the principles of Modern Portfolio Theory, and can estimate the cost of equity and debt capital in applied contexts. Assessment criteria: accuracy, clarity of presentation, correct use of terminology, quantitative analysis skills.
Knows the main theories concerning corporate capital structure and can discuss them in relation to real-world cases. Assessment criteria: accuracy, clarity of presentation, correct use of terminology.
Understands the determinants of corporate financing decisions and is able to analyze them in real situations. Assessment criteria: accuracy, clarity of presentation, correct use of terminology.
Is able to estimate the value of a leveraged firm using data provided in practical exercises. Assessment criteria: quantitative analysis skills, accuracy, and correct application of methodologies.
Knowledge related to the teaching units of Financial Mathematics, Accounting, and Statistics is considered a highly recommended prerequisite.
The Business Economics exam is a formal prerequisite for this teaching unit.
Lectures with examples
Tutorials
Case study analysis
Self-assessment test
Seminars and Workshop with Professionals
Attendance is not compulsory
Students with certification of disability, specific learning disorders (SLD), or special educational needs should contact, at the beginning of the teaching unit, both the instructor and the Department’s disability liaison, Prof.ssa Elena Lagomarsino (elena.lagomarsino@unige.it), , to agree on teaching and examination arrangements that, while respecting the objectives of the teaching unit, take into account individual learning methods and allow the use of any compensatory tools
Book
D. Hillier, S. Ross, R. Westerfield, J. Jaffe, B. Jordan, “Corporate Finance” 4/ed, McGraw Hill, 2023. Capp. 1, 4, 6-10, 12,14-16
Ricevimento: Office hours will be arranged with students at the beginning of the teaching unit. Students may contact the instructor by email for any needs.
ROSALIA SANTULLI (President)
MARCO DI ANTONIO
FRANCESCA QUERCI
LAURA NIERI (President Substitute)
Calendario didattico | DIEC
Written Exam
For attending students, the assessment includes: - A midterm exam with exercises and multiple-choice questions (50% of the final grade) - A final exam with exercises and open-ended questions (50% of the final grade)
For non-attending students, a written exam with exercises and questions is required
The program of the teaching unit is identical for both attending and non-attending students
The written exam will assess the student's analytical skills in determining cash flows, applying the main capital budgeting techniques, and calculating the cost of capital. It will also evaluate the clarity of presentation and the correct use of technical terminology in solving exercises and answering open-ended questions, which are designed to test the student's understanding and interpretation of key financial theories.
For further information not included in the teaching unit description, please contact the instructor
