CORPORATE FINANCE

CORPORATE FINANCE

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Code
73189
ACADEMIC YEAR
2019/2020
CREDITS
9 credits during the 3nd year of 8699 Economics (L-33) GENOVA
SCIENTIFIC DISCIPLINARY SECTOR
SECS-P/09
TEACHING LOCATION
GENOVA (Economics)
semester
1° Semester
Prerequisites
Teaching materials

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 explaining how to use financial theory to solve practical problems concerning corporate finance. In details the course analyses capital budgeting techniques

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.

 

Teaching methods

  • Lectures
  • Case Studies
  • Seminars and Workshop with Professionals 
  • Assignments using Aulaweb platform

SYLLABUS/CONTENT

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
  • Valuing 

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

RECOMMENDED READING/BIBLIOGRAPHY

  • 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   

LESSONS

Teaching methods

  • Lectures
  • Case Studies
  • Seminars and Workshop with Professionals 
  • Assignments using Aulaweb platform

LESSONS START

1st Semester

ORARI

L'orario di tutti gli insegnamenti è consultabile su EasyAcademy.

Vedi anche:

CORPORATE FINANCE

EXAMS

Exam description

Final written exam.

Students that attend lectures regularly may choose the 'continuos valuation method' that implies 3-4 assignments and an intermediate exam.

Assessment methods

The exam includes:

  • multiple-choices questions
  • true/false questions
  • open-ended questions
  • problems

FURTHER INFORMATION

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.