CORPORATE FINANCE

“Corporate Finance” is one of the core courses within the degree program
in Business Administration and Management. The main goal of the course
is to provide students with a basic understanding of how to manage
money in a company, being able to identify the solutions that allow its
transformation into new market value. In this view, the financial function
is not only in charge of the capital provision decisions but it also
contributes to create the company competitive advantage, balancing
capital provision with its efficient allocation.
In fact, the main educational goal of the course is to stress that the value
of capital depends on the ability to generate operating cash flows in line
with the risk-return expectations of all stakeholders. According to this
perspective, the long-term equilibrium of the company can be achieved
only if all stakeholders’ interests are satisfied, without discriminating or
egoistically excluding some of them.
More specifically, the main contents of the course will focus on the
computation and interpretation of the historical (cash flow statement)
and future (budget) cash flows, on the valuation of stocks and bonds, on
Testi di riferimento Finanza Aziendale, 2018, McGraw-Hill, Customized Publishing (disponibile
in libreria Cafoscarina a partire da settembre).
Note:
1. Il libro è una selezione di capitoli tratta da Ross S., Hiller D.,
Westerfield R., Jaffe J., Jordan B., Finanza aziendale, McGraw-Hill, 2015,
capp. 1, 3, 4, 5, 6, 7, 10, 12, 15
2. Il libro contiene delle credenziali di accesso alla piattaforma
Connect (realizzata da McGraw-Hill), dove il docente caricherà, durante il
corso, 8 esercitazioni online facoltative, che potranno attribuire fino ad
un massimo di due punti in più all’esame a chi le svolge tutte:
a. 1 punto a chi in media ha risposto correttamente a più di 1/2
delle domande (> 50%)
b. 2 punti a chi in media ha risposto correttamente a più di 3/4 delle
domande (> 75%)
Modalità esame scritto
Modalità di verifica
dell'apprendimento
L'esame è scritto e si compone di 3 parti: 10 domande a risposta multipla
(nessuna penalizzazione in caso di errore o di mancata risposta), una
domanda aperta, un esercizio. Ogni parte è valutata in trentesimi. Il voto
finale è la media delle tre parti. A questo punteggio sono aggiunti fino ad
un massimo di 2 punti agli studenti che avranno svolto e superato le 8
esercitazioni online facoltative, caricate dal docente durante il corso sulla
piattaforma Connect.
Altre informazioni Accessibilità, Disabilità e Inclusione
Accomodamenti e Servizi di Supporto per studenti con disabilità o con
disturbi specifici dell’apprendimento
Ca’ Foscari applica la Legge Italiana (Legge 17/1999; Legge 170/2010)
per i servizi di supporto e di accomodamento disponibili agli studenti con
disabilità o con disturbi specifici dell’apprendimento. Se hai una disabilità
motoria, visiva, dell’udito o altre disabilità (Legge 17/1999) o un disturbo
specifico dell’apprendimento (Legge 170/2010) e richiedi supporto
(assistenza in aula, ausili tecnologici per lo svolgimento di esami o esami
individualizzati, materiale in formato accessibile, recupero appunti,
tutorato specialistico a supporto dello studio, interpreti o altro) contatta
l’ufficio Disabilità e DSA disabilita@unive.it.
Etichette CONFERMATO
the capital budgeting decisions and on the estimation of the company
cost of capital. All these topics will be presented on a theoretical and
practical basis, allowing students to develop the quantitative skills
necessary to cope with the main corporate financial decisions.

The participation to the activities proposed for the course (frontal classes,
in presence and online assignments) and the personal workload will allow
students to:
1. Knowledge and understanding
• Acquire knowledge of the basic models of corporate finance and,
moreover, understand the key-mechanisms behind the analyses and
forecast of historical and prospective cash flows and capital
provision/allocation decisions
2. Applying knowledge and understanding
• Be able to analyze and evaluate the financial equilibrium of a
company
• Be able to evaluate the financing and investment decisions
• Be able to identify the correct risk-return relation
• Be able to estimate the correct cost of capital for the company
3. Judgmental capabilities
• Critically evaluate the capital budgeting decisions, choosing the
most proper method
• Critically evaluate the financial sustainability of the corporate
investments
• Evaluate the financial soundness of the company and its ability to
maintain its economic and financial equilibrium in the medium-short term
horizon
4. Communication abilities
The course will allow students to enhance their communication abilities
through the knowledge of the technical language in the corporate finance
field.
5. Learning abilities
The course will increase the students’ ability to integrate the study of the
book with practical exercises/cases, in person and online.

Students are expected to have achieved the learning objectives and to
have passed (propaedeutic subjects) the exam of "Principles of
Management and International Accounting - 1" and "Principles of
Management and International Accounting - 2". In particular, students
should be familiar with balance sheet and income statement and their
reclassification schemes. Moreover, students should know mathematical
concepts like “present/future value”, the rules of interest compounding
and statistical concepts like mean, variance and standard deviation.

1. Introduction to the course and presentation of the Corporate
Finance Circuit
2. Computation of historical cash flows and analysis of the financial
equilibria
3. Computation of the future cash flows: the budget
4. Capital budgeting decisions: the Net Present Value method (NPV)
5. Other criteria for the capital budgeting decisions and applications
(Equivalent Annual Cost)
6. Bonds valuation
7. Stocks valuation
8. The risk-return relation: the Capital Asset Pricing Model (CAPM)
9. The risk-return relation in the capital budgeting decision
10. The capital structure decisions
a. Basic principles
b. The Modigliani-Miller theorem with corporate taxation

Finanza Aziendale, 2018, McGraw-Hill, Customized Publishing (available
by the bookshop Cafoscarina starting from September).
Note:
1. The book is a selection of chapters taken from Ross S., Hiller D.,
Westerfield R., Jaffe J., Jordan B., Finanza aziendale, McGraw-Hill, 2015,
chap. 1, 3, 4, 5, 6, 7, 10, 12, 15
2. The customized book contains the credentials to access the
online platform “Connect” (McGraw-Hill), where the Professor will upload
8 non-mandatory assignments that can guarantee up to 2 extra grades at
the exam to students who will do all of them:
a. 1 grade to students who on average respond correctly to more
that ½ of the questions (>50%)
b. 2 grades to students who on average respond correctly to more
than ¾ of the questions (>75%)

The exam is written and made of three parts: 10 multiple-choice
questions (no penalties for unanswered questions or wrong answers), 1
open question, 1 exercise. Each part is graded on a 30 points basis. The
final grade is the average of the three parts. Up to 2 points (2 grades) will
be added to those students who will have passed the 8 (non-mandatory)
online assignments, uploaded by the Professor on the Connect Platform
during the course.

The course is based on frontal lectures. All materials used during classes
will be available to attending students through the Moodle platform.
Lectures combine the presentation of the basic principles in corporate
finance with their practical application through exercises and business
cases.
The course will benefit of the presence of 1 tutor, who will make extra
exercises and help students to get prepared for the exam.

Italian

Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and
students with specific learning impairments
Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding
support
services and accommodation available to students with disabilities. This
includes students with
mobility, visual, hearing and other disabilities (Law 17/1999), and specific
learning impairments (Law 170/2010). If you have a disability or
impairment that requires accommodations (i.e., alternate testing,
readers, note takers or interpreters) please contact the Disability and
Accessibility Offices in Student Services: disabilita@unive.it.

Written