Advanced corporate finance
A.A. 2022/2023
Obiettivi formativi
The course aims at providing students with theoretical knowledge and practical skills on selected concepts in corporate finance. Special attention will be devoted to how companies make sophisticated investment decisions and to how investors apply advanced valuation techniques. Students will learn how market imperfections (such as taxes, financial distress and agency costs) influence companies' optimal capital structure and payout policies, and eventually affect company value. Moreover, the concept of options will be introduced and used to include real options in sophisticated capital budgeting processes. The course will have a strong practical components, based on numerical exercises and review of real case studies.
Risultati apprendimento attesi
By the end of the course, the students will be able to:
· Illustrate how market imperfections influence capital structure
· Include different capital structures in capital budgeting decisions and in companies' valuation
· Evaluate real options and include them in capital budgeting decisions
· Illustrate how market imperfections influence capital structure
· Include different capital structures in capital budgeting decisions and in companies' valuation
· Evaluate real options and include them in capital budgeting decisions
Periodo: Secondo 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
Responsabile
Periodo
Secondo trimestre
If requested by the University, the lectures will also be streamed online through the Teams platform
Programma
A detailed structure of the course if the following:
1. Introduction to the course and recap of basic Corporate Finance: discounted cash flows, the cost of capital, CAPM.
2. Capital budgeting and capital structure: how different capital structures influence company value
3. Real options: how to account for flexibility in our capital budgeting decisions
4. Raising long-term equity finance: Initial Public Offerings and Seasoned Equity Offerings
5. Raising and managing short-term finance: leasing, working capital management and short-term financial planning
6. Mergers and acquisitions: partner selection, M&A mechanisms, success drivers
7. Restructuring and Liquidation
8. International Corporate Finance: Analyzes the valuation of projects with foreign cash flows
9. Testimonials and group presentations
Besides theoretical frontal lectures, we will have more interactive practical lectures during which we will discuss real cases and solve numeric exercises. We will rely on some of the resources of the University library, including Refinitiv, Zephyr and Orbis, useful to carry out quantitative analyses.
1. Introduction to the course and recap of basic Corporate Finance: discounted cash flows, the cost of capital, CAPM.
2. Capital budgeting and capital structure: how different capital structures influence company value
3. Real options: how to account for flexibility in our capital budgeting decisions
4. Raising long-term equity finance: Initial Public Offerings and Seasoned Equity Offerings
5. Raising and managing short-term finance: leasing, working capital management and short-term financial planning
6. Mergers and acquisitions: partner selection, M&A mechanisms, success drivers
7. Restructuring and Liquidation
8. International Corporate Finance: Analyzes the valuation of projects with foreign cash flows
9. Testimonials and group presentations
Besides theoretical frontal lectures, we will have more interactive practical lectures during which we will discuss real cases and solve numeric exercises. We will rely on some of the resources of the University library, including Refinitiv, Zephyr and Orbis, useful to carry out quantitative analyses.
Prerequisiti
There are no formal prerequisites, but taking corporate finance class is highly recommended
Metodi didattici
Lectures, valuation exercises, case-studies presentations, testimonials from practitioners (entrepreneurs, professionals in finance)
Materiale di riferimento
"Corporate Finance", IV edition. Jonathan Berk, Peter DeMarzo. Pearson.
The course slides and supplementary readings will be uploaded in the course website.
The course slides and supplementary readings will be uploaded in the course website.
Modalità di verifica dell’apprendimento e criteri di valutazione
The final grade of both attending and non attending students is based on two components:
- Final written exam (80%)
- Intermediate quizzes (20%)
Attending students can have up to 2 bonus points if they submit an optional assignment which consists in a case study on one of the following topics: IPO, SEO, M&A, liquidation, corporate restructuring. The assignment can be conducted in groups of maximum 3 students and will be presented to the class at the end of the course.
Non-attending students are those unable to participate in at least 80% of classes. The inability to attend class needs to be justified via email (e.g., Erasmus students, working students ). Class attendance is strongly encouraged for this course.
- Final written exam (80%)
- Intermediate quizzes (20%)
Attending students can have up to 2 bonus points if they submit an optional assignment which consists in a case study on one of the following topics: IPO, SEO, M&A, liquidation, corporate restructuring. The assignment can be conducted in groups of maximum 3 students and will be presented to the class at the end of the course.
Non-attending students are those unable to participate in at least 80% of classes. The inability to attend class needs to be justified via email (e.g., Erasmus students, working students ). Class attendance is strongly encouraged for this course.
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