OVERVIEW

The teaching unit introduces students to corporate financial decisions and to the main topics
concerning the interaction between companies and investors in financial markets.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims at developing the institutional contents related to the tasks of the finance function within corporate management, with a focus on both the most recent developments in theory and on operational and applicative aspects. In particular, the criteria and methodologies for the valuation of corporate investments, the principles and methodologies underlying the determination of the cost of capital and the risk-return ratio, as well as the criteria related to financing choices are developed.

AIMS AND LEARNING OUTCOMES

At the end of the teaching unit, students will be able to:
- Describe the role and functions of the financial manager (in typical corporate contexts).
- Apply the main project evaluation techniques (to corporate investment cases).
- Estimate the cost of capital and analyze the risk-return relationship (using provided data or
case studies).
- Identify the managerial principles governing corporate financing decisions (in proposed
business scenarios).
- Distinguish the main sources and instruments of financing (in relation to the different stages
of the company life cycle).

PREREQUISITES

A thorough understanding of Business Administration, General Mathematics, Financial
Mathematics, Accounting, and Statistics is fundamental for understanding the topics of
Corporate Finance.

TEACHING METHODS

The teaching unit includes lectures, case studies, seminars and workshops with
professionals, assignments using the Aulaweb platform, self-assessment tests, and instant
polls as participatory teaching tools. Personalized support is available for students with
learning disabilities or special needs, in accordance with University guidelines. Attendance is
not compulsory.

SYLLABUS/CONTENT

Part I - Investment Project Evaluation

• The Time Value of Money and Interest Rates;
• Investment Decision Rules
• Fundamentals of Capital Budgeting
• Valuing 

Part 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

Part III - CAPITAL STRUCTURE

• Capital Structure in a Perfect Market
• Debt and Taxes

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

LESSONS

LESSONS START

Second semester. The start date of the teaching unit will be published on the academic
calendar available on the Department website

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

Written exam. Further details on the exam procedures will be provided at the beginning of the teaching
unit.

ASSESSMENT METHODS

Learning outcomes are assessed through a written exam, consisting of theoretical and
practical questions on the topics covered. Evaluation criteria include the accuracy of answers,
the ability to apply learned methodologies, and clarity of exposition.