Corporate finance
A.A. 2018/2019
Obiettivi formativi
The course aims at providing notions and tools (both analytical and mathematical) most needed by a professional figure such as the Chief Financial Officer of a corporation. It covers Corporate Finance from the point of view of the corporation, as opposed to the point of view of investors; having said so, the point of view of investors and financial markets is part and parcel of what a CFO must take into account in his job, and so these aspects get covered in the course, but not efficient portfolio theory and computations.
Risultati apprendimento attesi
Non definiti
Periodo: Terzo trimestre
Modalità di valutazione: Esame
Giudizio di valutazione: voto verbalizzato in trentesimi
Corso singolo
Questo insegnamento non può essere seguito come corso singolo. Puoi trovare gli insegnamenti disponibili consultando il catalogo corsi singoli.
Programma e organizzazione didattica
Edizione unica
Periodo
Terzo trimestre
Programma
CORPORATE FINANCE COURSE, Q3, AY 2018-19
TEXTBOOK: JONATHAN BERK, PETER DEMARZO "CORPORATE FINANCE", 4TH EDITION
CHAPTERS AND SEQUENCE
Chapter Sections
1 The Corporation
1.1 The Four Types of Firms
1.2 Ownership Versus Control of Corporations
29 Corporate Governance
29.1 Corporate Governance and Agency Costs
29.2 Monitoring the Board of Directors and Others
29.3 Compensation Policies
29.4 Managing Agency Conflicts
29.6 Corporate Governance Around the World
2 Introduction to Financial Statements Analysis
All sections
26 Working Capital Management
All sections
3 Financial Decision Making
3.2 Interest rates and Time Value of Money
4 The Time Value of Money
4.1 The Timeline
4.2 The Three Rules of Time Travel
4.3 Valuing a Stream of Cash Flows
4.4 Calculating the Net Present Value
4.5 Perpetuities and Annuities
4.6 Using an Annuity Spreadsheet or Calculator
4.7 Non-annual Cash Flows
4.8 Solving for the Cash Payments
5 Interest Rates
All sections
6 Valuing Bonds
All sections
10 Capital Markets and the Pricing of Risk
All sections
12 Estimating the Cost of Capital
All sections
7 Investment Decision Rules
All sections
8 Fundamentals of Capital Budgeting
All sections
14 Capital Structure in a Perfect Market
14.1 Equity Versus Debt Financing
14.2 Modigliani-Miller I
14.3 Modigliani-Miller II
14.5 Beyond the Propositions
15 Debt and Taxes
15.1 The Interest Tax Deduction
15.2 Valuing the Interest Tax Shield
15.3 Recapitalizing to Capture the Tax Shield
16 Financial Distress, Managerial Incentives and Information
16.1 Default and Bankrupcy in a Perfect Market
16.2 The Costs of Bankrupcy and Financial Distress
16.3 Financial Distress Costs and Firm Value
16.4 Optimal Capital Structure: The Trade-off Theory
16.5 Exploiting Debt Holders: The Agency Costs of Leverage
16.6 Motivating Managers: The Agency Benefits of Leverage
16.7 Agency Costs and the Trade-off Theory
18 Capital Budgeting and Valuation with Leverage
18.1 Overview of Key Concepts
18.2 The Weighted Average Cost of Capital Method
18.3 The Adjusted Present Value Method
18.4 The Flow-to-Equity Method
18.5 Project Based Cost of Capital
20 Financial Options
All sections
30 Risk Management
30.1 Insurance
30.2 Commodity Price Risk
30.3 Exchange Rate Risk
17 Payout Policy
All sections
TEXTBOOK: JONATHAN BERK, PETER DEMARZO "CORPORATE FINANCE", 4TH EDITION
CHAPTERS AND SEQUENCE
Chapter Sections
1 The Corporation
1.1 The Four Types of Firms
1.2 Ownership Versus Control of Corporations
29 Corporate Governance
29.1 Corporate Governance and Agency Costs
29.2 Monitoring the Board of Directors and Others
29.3 Compensation Policies
29.4 Managing Agency Conflicts
29.6 Corporate Governance Around the World
2 Introduction to Financial Statements Analysis
All sections
26 Working Capital Management
All sections
3 Financial Decision Making
3.2 Interest rates and Time Value of Money
4 The Time Value of Money
4.1 The Timeline
4.2 The Three Rules of Time Travel
4.3 Valuing a Stream of Cash Flows
4.4 Calculating the Net Present Value
4.5 Perpetuities and Annuities
4.6 Using an Annuity Spreadsheet or Calculator
4.7 Non-annual Cash Flows
4.8 Solving for the Cash Payments
5 Interest Rates
All sections
6 Valuing Bonds
All sections
10 Capital Markets and the Pricing of Risk
All sections
12 Estimating the Cost of Capital
All sections
7 Investment Decision Rules
All sections
8 Fundamentals of Capital Budgeting
All sections
14 Capital Structure in a Perfect Market
14.1 Equity Versus Debt Financing
14.2 Modigliani-Miller I
14.3 Modigliani-Miller II
14.5 Beyond the Propositions
15 Debt and Taxes
15.1 The Interest Tax Deduction
15.2 Valuing the Interest Tax Shield
15.3 Recapitalizing to Capture the Tax Shield
16 Financial Distress, Managerial Incentives and Information
16.1 Default and Bankrupcy in a Perfect Market
16.2 The Costs of Bankrupcy and Financial Distress
16.3 Financial Distress Costs and Firm Value
16.4 Optimal Capital Structure: The Trade-off Theory
16.5 Exploiting Debt Holders: The Agency Costs of Leverage
16.6 Motivating Managers: The Agency Benefits of Leverage
16.7 Agency Costs and the Trade-off Theory
18 Capital Budgeting and Valuation with Leverage
18.1 Overview of Key Concepts
18.2 The Weighted Average Cost of Capital Method
18.3 The Adjusted Present Value Method
18.4 The Flow-to-Equity Method
18.5 Project Based Cost of Capital
20 Financial Options
All sections
30 Risk Management
30.1 Insurance
30.2 Commodity Price Risk
30.3 Exchange Rate Risk
17 Payout Policy
All sections
Informazioni sul programma
A schedule with the sequence of chapters and sections that are to be covered is posted on the course's Ariel site.
Propedeuticità
Only basic algebra is required. Notions of monetary economics are useful to understanding the term structure of interest rates; some understanding of business cycles is important to the discussion of diversifiable/non-diversifiable risk.
Prerequisiti
All tests are written and involve answering questions picked from the textbook's (Berk and De Marzo 4th International Edition) online resources for instructors.
Two ungraded, in-class assignments are used to familiarize students with the kind of questions they will face in the final exam. In any event, students are made aware that all questions are of the very same kind as can be found in the textbook at the end of each chapter.
Two ungraded, in-class assignments are used to familiarize students with the kind of questions they will face in the final exam. In any event, students are made aware that all questions are of the very same kind as can be found in the textbook at the end of each chapter.
Metodi didattici
Two-hour lectures with projection of slides and as much student interaction as can be mustered.
Materiale di riferimento
Jonathan Berk, Peter DeMarzo: Corporate Finance, 4th Edition; Pearson Global Edition; Chapters 1-8, 10, 12-25 and associated MyFinanceLab.
Also recommended: T. R. Ittleson: Financial Statements
Various news articles and academic papers posted to the Ariel course website
Also recommended: T. R. Ittleson: Financial Statements
Various news articles and academic papers posted to the Ariel course website
SECS-P/09 - FINANZA AZIENDALE - CFU: 6
Lezioni: 40 ore
Docente:
Molajoni Pierluigi