CORPORATE FINANCE

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Code
73189
ACADEMIC YEAR
2021/2022
CREDITS
9 credits during the 3nd year of 8699 Economics (L-33) GENOVA

6 credits during the 3nd year of 8697 Business Administration (L-18) GENOVA

SCIENTIFIC DISCIPLINARY SECTOR
SECS-P/09
TEACHING LOCATION
GENOVA (Economics)
semester
2° Semester
Prerequisites
Prerequisites
You can take the exam for this unit if you passed the following exam(s):
  • Economics 8699 (coorte 2019/2020)
  • BUSINESS ADMINISTRATION 41125
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 main objective of the course is to provide the conceptual background for corporate financial decisions from the point of view of corporate value creation. Students are expected to develop skills for making corporate investments and financing decisions. Topics include valuation techniques and capital budgeting; risk and return; capital asset pricing model; corporate capital structure and financial policy.

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.

 

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 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.

In consideration of the current COVID-19 emergency, if restrictions persist and traditional face-to-face classrooms teaching is not be possible, blended learning methods will be adopted and the whole course will be available also online. More details will be provided to the students at the beginning of the semester via AulaWeb.

 

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

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

Exam Board

ROSALIA SANTULLI (President)

LAURA NIERI

LESSONS

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.

In consideration of the current COVID-19 emergency, if restrictions persist and traditional face-to-face classrooms teaching is not be possible, blended learning methods will be adopted and the whole course will be available also online. More details will be provided to the students at the beginning of the semester via AulaWeb.

 

LESSONS START

Lessons start in the first semester on September 15, 2020.

Class schedule

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

Exam schedule

Date Time Location Type Notes
16/12/2021 10:00 GENOVA Scritto
13/01/2022 10:00 GENOVA Scritto
13/01/2022 10:00 GENOVA Scritto
03/02/2022 10:00 GENOVA Scritto
03/02/2022 10:00 GENOVA Scritto
01/06/2022 10:00 GENOVA Scritto
01/06/2022 10:00 GENOVA Scritto
16/06/2022 10:00 GENOVA Scritto
16/06/2022 10:00 GENOVA Scritto
07/07/2022 10:00 GENOVA Scritto
07/07/2022 10:00 GENOVA Scritto
08/09/2022 10:00 GENOVA Scritto
08/09/2022 10:00 GENOVA Scritto

FURTHER INFORMATION

Students who fail the exam can repeat it with no limitations.

However if the final score in below 16/30 the exam cannot be repeated in the next date.