The module investigates the role of corporate finance for business growth. In this respect, the module aims to provide theoretical and practical insights useful, on the side of firms, for an effective selection of funding and investments, as well as an effective risk management. Furthermore, the typical short run issues i.e. capital budgeting and liquidity and their possible solutions (i.e. financial intermediaries and trade credit) are addressed in this module. Lastly, using case studies, the module aims to develop specific expertise in order to be able to identifying costs and benefits of debt, as well as defining the guidelines for the identification of an optimal financial structure.
-Knowledge and understanding: at the end of the course the student will have acquired the knowledge and the ability to understand the main sources of corporate financing, both banking and other, as well as the main quantitative techniques for selecting investments and hedging risks.
· Ability to apply knowledge and understanding: at the end of the course, the student will be able to apply the knowledge and practical skills acquired for the purpose of a) identifying the ideal financial structure; b) the implementation of trend analysis and quotients, ideal for signaling any critical issues and business strengths; c) corporate valuation in the case of extraordinary finance transactions.
· Independent judgment: the student will be able to independently assess the quality of corporate investments, in a medium-long term perspective, as well as suggest any improvement actions to optimize performance.
· Communication skills: the student must be able to use the appropriate technical terminology to communicate and interact with interlocutors who have heterogeneous degrees of knowledge on the topics covered during the course.
· Learning skills: the student must demonstrate that they have acquired the logical-conceptual tools necessary to strengthen their learning ability in the financial field and continue their studies in business analysis.
No one. However, it certainly helps the knowledge of bank- and corporate balance-sheet.
The module can be divided into 3 units, the duration of which depends on the degree of preparation of the students and on the level of assimilation that they show. The 3 units have the following articulation and average duration:
First teaching unit (24 hours long)
Introduction to corporate finance; How to calculate present values and valuing bonds; Financial planning; Financial analysis; The value of common stocks; Net present value and other investment criteria.
Second teaching unit (24 hours long):
Making investment decisions with the net present value rule; Introduction to risk and return; Project analysis; Agency problems, compensation, and performance measurement; How corporations issue securities.
Third teaching unit (24 hours long)
An overview of corporate financing; Payout policy; Debt policy importance; Optimal corporate borrowing level; Real options; What we do and do not know about finance.
Active lectures aimed to improve both knowledge and understanding of the students. In order to strengthen the communicative skills, students are encouraged to actively participate to the discussion with questions and considerations.
Exercises aimed to develop application and problem solving skills. The exercises mainly deal with investments valuation through simulations and case studies analysis.
Seminars: operators from private and corporate banking sector are invited to enrich the contents of the module by bringing in the classroom their professional experiences.
English version: Brealey, Myers, Allen, Principles of corporate finance, 11/e, McGraw-Hill.
Students are invited to view the material on the e-learning platform.
Final written exam: 2 open-ended questions and 3 exercises. A maximum score of 6 points is assigned to each question. The exam lasts 60 minutes. The evaluation criteria refer to the understanding of the topics included in the study program, the ability to summarize and communicate as well as to use an appropriate technical language.