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 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

After studying this course, students should be able to:

• identify the key themes in corporate finance

• explain the role of finance in an organisation

• analyse the relationship between strategic decision making and corporate financing decisions

• understand wihch techniques can be used to evaluate a project 

• calculate cost of equity and the cost of cpitale

• understand the main financing sources and instruments

• understand the 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, Statistics  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.

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

Class schedule

The timetable for this course is available here: Portale EasyAcademy