48144 - Corporate Finance

Learning outcomes

The aim of the course is to provide the tools to evaluate companies and industrial projects. The first part of the course is asset-side oriented and looks at how business strategy gives rise to financial needs and risk. The second part of the course is liability-side oriented and investigates for the optimal debt/equity ratio and the return for the investors. Overall, the course points out the relevant drivers for company valuation and allows the students to: - apply the main financial and relative methods of business valuation; - analyze the most frequently used financial instruments in business valuations; - understand the different business strategies and their impact on value.

Course contents

Topics covered in this course include:

- Corporate value creation: project valuation and capital budgeting;

- Firm valuation;

- Cost of capital, measuring risk and return;

- Equity financing (Venture Capital, IPO, SEO);

- Determinants of capital structure decision;

- WACC and APV.

Readings/Bibliography

Brealey R., Myers S. and F. Allen, Principles of Corporate Finance. Any edition is fine.

Teaching methods

Theoretical lectures, applications and exercises.

Assessment methods

Written exam. 

Exams will last 35 minutes. A +1 bonus will be assigned to students turning in the exam within 25 minutes.

Exams will be made of one exercise (20pts) and 5 multiple choice questions (2pt each).

There is no penalty for wrong answers in multiple choices questions.

NOTE: Assessment methods may change due to COVID restrictions. Updates will be provided by the instructor.

Teaching tools

Slides are provided by the instructor before the class.

Office hours

See the website of Giulia Baschieri