This course introduces the basics of financial management to help improving participant’s decision making in finance related issue. We introduce the necessary tools, theoretical concepts and provide practioners view in this course. Students develop a basic understanding of business finance which deals with how organizations effectively manage their operating and fixed assets and fund them with an optimal mix of debt and equity financing. The course emphasizes understanding of the valuing financial assets; cost of capital; risk and return concepts; Investment decision; cost of capital; Dividend theories, policy and Bonus issue.
Basic understanding of financial statements, understanding of financial markets
Module 1: Foundation to Corporate Finance
Unit 1: Introduction to corporate Finance Fundamental principles of corporate finance, Value maximization, stock price maximization.
Unit 2: Tools for Financial analysis
Analyzing financial statements: Shifting from Accounting to Finance, Ratio analysis and decision making
Unit 3: Time value of money
Module 2 : Investment Decision and Project planning
Unit 1: Investment decisions, Estimation of project cash flows, discounted and non-discounted cash flow technique.
Unit 2: Cost of Capital, Capital Structure theories, Dividend policy
Unit 3: Risk and return: Concept of investment and Security analysis, risk and its types, fundamental and technical analysis, Efficient Market Hypothesis, Capital Asset Pricing Model
The course follows the pedagogy which includes lecture, exercises, case discussion and project presentation.
Aswath Damodaran, 04/e, Applied Corporate Finance. Wiley
Brealey, Myers, Allen, Sandri, Principi di finanza aziendale, 8a edizione, McGraw-Hill.
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.
Evaluation consist of following components :
a) Class participation : 5 Marks
b) Article/Case/Online exercise: 10 marks
Oral Examination:15 marks
A thorough reading of the assigned material is helpful to you to understand the session and participate. So, it is mandatory that you have read the assigned cases, chapters and prepare for the class.
An active Class Participation helps in the learning process. Considering this, I would appreciate if you participate actively and contribute in the case discussion.