1. Home
  2. Education
  3. Degree programme courses
  4. Corporate Finance

Corporate Finance

A.Y. 2019/2020
6
Max ECTS
40
Overall hours
SSD
SECS-P/09
Language
English
Learning objectives
The course aims at providing knowledge of the financial aspects of an enterprise or corporation in order to enable students to assess its prospects, estimate its value, understand the process for deciding the investments underpinning its growth, judge the best way to source funds for such investments, understand hedging and payout decisions, all in the context of the financial and institutional environment in which firms operate.
Expected learning outcomes
At the end of the course the student knows a corporation's accounts explaining how the main internal governance and external environment issues are interrelated and how they can best be analyzed to gauge the health, prospects and value of a business. Specifically, the student knows the time value of money, the cost of capital and the identification of the appropriate discount or hurdle rate, the main decision criteria such as IRR, NPV, repayment period, capital structure and distribution policies and the main issues involved in the decision to hedge risk through futures and options.

Lesson period: Third trimester

Lessons timetable

Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi

Exams calendar

Single course

This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.

Search a single course
Course syllabus and organization

Single session

Lesson period
Third trimester
Course syllabus
1. CH.1: INTRODUCTION TO CORPORATE FINANCE
· Investment and financing decisions
· The financial goal of the corporation
· Governance and agency problem
2. CH.2: TIME VALUE OF MONEY
· How to calculate the present value and the future value
· Annuities and perpetuities
· Growing perpetuities and annuities
· How interest rates and quoted and paid
3. CH.28: FINANCIAL ANALYSIS
· Financial statements
· Financial ratios
· MVA and EVA
· Du Pont system
4. CH.3: VALUING BONDS
· Bond valuation using present value formula
· Bond value and interest rate
· Term structure of interest rate and the duration
· Real and nominal interest rates
5. CH.4: VALUING COMING STOCKS
· Stock trading and valuation
· Estimating the cost of capital
· Using DCF for business valuation
6. CH.5: NET PRESENT VALUE (NPV) AND OTHER INVESTMENT CRITERIA
· Net present value
· Payback period
· Internal rate of return
7. CH.7: INTRODUCTION TO RISK AND RETURN
· Risk and return trade-off
· Diversification and portfolio risk
8. CH.8: PORTFOLIO THEORY AND THE CAPITAL ASSET PRICING MODEL (CAPM)
· The birth of portfolio theory
· Portfolio risk and return
· CAPM and other risk pricing theories
9- CH.9: RISK AND THE COST OF CAPITAL
· The cost of equity capital
· The cost of debt capital
· Project cost of capital
· Certainty equivalent
10- CH.17: DOES DEBT POLICY MATTERS
· The effect of financial leverage
· Financial risk and expected return
11- CH.19: FINANCING AND VALUATION
· The cost of capital
· Business valuation
· WACC approach to valuation
· Adjusted present value (APV) approach
Prerequisites for admission
To proceed smoothly with the course of corporate finance, students must have acquired some basic competence in the following disciplines: financial accounting, algebra, statistics, and financial economics.
Teaching methods
The course is designed to be delivered through two classes per week (2 hours each), supported by presentation slides, immediate exercises in the class, and mini business cases.
Teaching Resources
PRINCIPLES OF CORPORATE FINANCE
For BREALEY, MYERS, AND ALLEN
13TH EDITION
Assessment methods and Criteria
At the end of the course, students will be evaluated based on a written exam containing closed questions (multiples choices) and open questions (exercises).
SECS-P/09 - CORPORATE FINANCE - University credits: 6
Lessons: 40 hours
Professor: Harasheh Murad
Shifts:
-
Professor: Harasheh Murad