FIRM FINANCIAL MANAGEMENT

The "Firm Financial management" course delves into the essential principles of finance and introduces students to various financial concepts. It emphasizes the significance of finance in both corporate financial management and decision-making.
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 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; the exemplifications will make specific reference to the realities of the tourism supply chain, distinguishing functional choices for the operation of the day to day business from those of real estate facilities dedicated to it. This way students develop the quantitative skills necessary to cope with the main corporate financial decisions also in that industry.
The course is structured in a manner that it starts from the very basics and then leaves the students at a level where they will be able to pursue more advanced finance courses.

•Learning fundamental principles of corporate finance, analyze historical financial data, predict future cash flows, and make capital provision and allocation decisions.
•Assess a corporate financial health and performance, looking at the HoReCa industry in detail.
•How to apply valuation methods to determine asset/investment value using appropriate models.
•Use the relationship between expected return and risk of assets and portfolios to make sound investment decisions.
•Evaluate capital projects to determine their feasibility.
•Estimate how growth affects the need for external financing.

Knowledge of basic accounting is welcome

Overview of Financial Management
Analysis of Financial Statements
Financial Planning and Forecasting
Time value of money
Capital budgeting decisions
Interest rates, the cost of debt
Risk and rates of return, Capital Asset Pricing Model (CAPM)
The cost of equity
The capital structure decisions

Fundamentals of Financial Management. Eugene F. Brigham & Joel H. Houston. 15th Edition.

Secondary Texts :
Fundamentals of Corporate Finance. Stephen A. Ross, Randolph W. Westerfield & Bradford D. Jordan, 9th edition.

Written exam with 10 multiple-choice questions, 1 open-ended question and 1 exercise.
Exam duration: 1 hour

written

A. scores in the 18-22 range will be awarded in the presence of:
- sufficient knowledge and ability to apply understanding with reference to the course syllabus;
- limited ability to apply knowledge by making independent judgments;
- sufficient communication skills, especially in relation to the use of specific language pertaining to the area of strategy and innovation;
B. scores in the 23-26 range will be awarded in the presence of:
- fair knowledge and ability to apply understanding with reference to the course syllabus;
- fair ability to apply knowledge by making independent judgments;
- fair communication skills, especially in relation to the use of specific language pertaining to the area of strategy and innovation;
C. scores in the 27-30 range will be awarded in the presence of:
- good or very good knowledge and ability to apply applied understanding with reference to the course syllabus;
- good or excellent ability to apply knowledge by making independent judgments;
- fully appropriate communication skills, especially in relation to the use of specific language pertaining to the area of strategy and innovation;
D. honors will be awarded in the presence of knowledge and applied understanding with reference to the syllabus; excellent judgment and communication skills.

The course is based on in-person classroom based 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 weekly practical application through exercises and business cases related to the tourism supply chain.

This subject deals with topics related to the macro-area "Circular economy, innovation, work" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development