CORPORATE FINANCE

The course provides the theoretical guidelines and methods necessary to carry out a detailed analysis of business performance and the cost of capital, as well as for realizing investment decisions that consider the firm's financial structure, all in light of the principle of creating value for shareholders and company stakeholders.

Topics that will be covered include: introduction to corporate finance; balance sheet reclassification; financial analysis (determination of financial statement ratios and cash flows); the financial system and market efficiency; the financial value of time, the opportunity cost of capital and the net present value criterion; share yield and value; risk and returns of financial instruments; the cost of equity and other forms of financing; investment evaluation criteria; analysis of relevant flows and incentives to create value; risk analysis in the evaluation of investments; principles of composition of the financial structure.

Knowledge and understanding
At the end of the course, the student will have acquired basic knowledge necessary to analyze, understand and interpret the main theoretical models in the field of corporate finance and their main applications in business reality. More specifically, the student will have acquired knowledge of the elements relating to financial analysis, the evaluation of corporate investments, the cost of corporate capital and the principles of financial structures.

Autonomy of judgment
At the end of the course, the student will be able to understand and employ the main tools to produce and interpret relevant measures of business performance and the cost of capital, as well as to make decisions on investment projects. Finally, the student will be able to interpret the logic underlying the corporate financial structure, in order to create value for shareholders.

Communication skills
Through the theoretical notions acquired, the student will be able to express qualitative / quantitative judgments regarding the conditions of investment feasibility, their profitability, as well as the efficiency of the related financial structure.

For an adeguate understanding of the phenomena that will be explored throughout the course, students are advised to have a basic knowledge of management and accounting.

N. SESSION TOPIC REFERENCE MATERIAL
01 Course presentation
Introduction to corporate finance Slides 01

02 Dynamic analysis in corporate finance
Financial statements and cash flows Slides 02
03 Exercises on financial statements Caso “Finex SpA”
04 Programming Cash flows I Slides 03
05 Programming Cash flows II Slides 03
06 Introduction to investment valuation Slides 04
07 NPV alternatives for investment valuation Slides 05
08 Exercises in investment valuation
The “Primeballs” case “Primeballs” Case
09 Share and firm valuation Slides 06
10 Exercises in share valuation
The “Eutelsat" case “Eutelsat” Case
11 Risk and cost of capital (WACC e CAPM) Slides 07
12
13 Exercises in estimating the cost of capital
The “Barilla” case “Barilla” Case
14 Capital structure decisions Slides 08
15 Taxation and capital structure decision-making Slides 09

• Corporate Finance - David Hillier, Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Fourth European Edition, Editore: McGraw-Hill
o Chapters indicated in the detailed presentation of the course content and program
• Slides (elaborated by the professor)
• Case studies (elaborated by the professor)

The exam will take place in written form. The exam will have a duration of 60 minutes and the form of a test based on multiple-choice and open-end questions. Questions will include both theoretical topics and exercises.

Case studies constitute an integral part of the preparation for the final evaluation for all students.

The teaching methodology consists of lectures held by the teacher and the discussion of concrete cases. Lessons will be supported by cases and material made available on the university's e-learning platform. Lessons will be available for a limited duration on the platform, following the dual teaching modality that will apply for this semester.

English

written