Corporate Finance and Valuation
A.Y. 2025/2026
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
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Third trimester
Course syllabus
Module 1 - Introduction to Corporate Finance
· The role of corporate finance in business management
· Objectives of financial management: value creation and shareholder wealth
· Overview of financial decision areas: investment, financing, and liquidity
Module 2 - Financial Statement Analysis
· Understanding and interpreting financial statements
· Key financial ratios: profitability, liquidity, solvency, and efficiency
· Financial performance evaluation and benchmarking
Module 3 - Time Value of Money and Capital Budgeting Basics
· Present and future value concepts
· Net Present Value (NPV) and Internal Rate of Return (IRR)
· Capital budgeting techniques and investment decision criteria
Module 4 - Cost of Capital and Capital Structure
· Components of cost of capital: debt, equity, and weighted average
· The trade-off between debt and equity financing
· Capital structure theories and their implications
Module 5 - Risk and Return
· Defining and measuring risk
· Risk-return trade-off and portfolio concepts
· Introduction to CAPM and its corporate applications
Module 6 - Working Capital Management
· Managing cash, receivables, inventories, and payables
· Operating cycle and liquidity management
· Strategies for efficient working capital use
· The role of corporate finance in business management
· Objectives of financial management: value creation and shareholder wealth
· Overview of financial decision areas: investment, financing, and liquidity
Module 2 - Financial Statement Analysis
· Understanding and interpreting financial statements
· Key financial ratios: profitability, liquidity, solvency, and efficiency
· Financial performance evaluation and benchmarking
Module 3 - Time Value of Money and Capital Budgeting Basics
· Present and future value concepts
· Net Present Value (NPV) and Internal Rate of Return (IRR)
· Capital budgeting techniques and investment decision criteria
Module 4 - Cost of Capital and Capital Structure
· Components of cost of capital: debt, equity, and weighted average
· The trade-off between debt and equity financing
· Capital structure theories and their implications
Module 5 - Risk and Return
· Defining and measuring risk
· Risk-return trade-off and portfolio concepts
· Introduction to CAPM and its corporate applications
Module 6 - Working Capital Management
· Managing cash, receivables, inventories, and payables
· Operating cycle and liquidity management
· Strategies for efficient working capital use
Prerequisites for admission
Knowledge of financial markets and instruments is required. Attendance of the course in Financial Investments is strongly recommended
Teaching methods
Lectures, Individual assignments, Group work and case discussions
Teaching Resources
Jonathan Berk and Peter DeMarzo, Corporate Finance, Pearson; cases discussed in class; teacher-provided material
Assessment methods and Criteria
Multiple-choice tests
SECS-P/11 - FINANCIAL MARKETS AND INSTITUTIONS - University credits: 6
Lessons: 40 hours
Professor:
Vandone Daniela
Professor(s)