CORPORATE FINANCE AND FINANCIAL INSTITUTIONS - 1

The course provides an introduction to corporate finance. Students will pass from the knowledge of accounting data they have previously acquired to the analysis and interpretation of both historical and projected cash flows. In addition, the principles and tools employed to estimate the cost of capital, realize investment decisions and determine the optimal capital structure will be presented, all in light of the value creation principle for shareholders and corporate stakeholders.

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 (exam must be successfully completed before registering for the Corporate Finance exam) and accounting.

Analysis and interpretation of cashflows / The Cash Flow Statement
Financial planning and projected cash flows
Value creation and the health status of the company
Investment valuation
Cost of capital
Principles of capital structure decisions

• "Corporate finance : theory and practice"
Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi
Editor: John Wiley & Sons
• 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 comprise both multiple-choice and open-end questions. Both categories of questions can be either based on theory or exercises.

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.

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