48144 - Corporate Finance

Learning outcomes

At the end of the course student have a solid understanding of the major variables underlying the investment and financing decision of the firm. After a brief introduction to financial accounting, a particular focus is direct to the common techniques used for corporate valuation such as DCF analysis and multiples.

Course contents

Corporate Finance (48144) is an advanced corporate finance course with a focus on valuation. It aims to provide students with the theoretical framework of corporate valuation issues and the tools to apply valuation models in practical situations. Topics covered include estimating cash flows, the firm’s opportunity cost of capital, the role of capital structure, relative valuation.

Readings/Bibliography

The suggested textbooks of the course are the following.

• Damodaran, A., Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, John Wiley & Sons, 3rd Edition.
• Massari, M., Gianfrate, G., and L. Zanetti, Corporate valuation: Measuring the value of companies in turbulent times. John Wiley & Sons, 2016.

  A case study will be discussed during the last class meeting. The case will be taken from the following textbook.

• Bruner, R.F., Eades, K.M., and M.J. Schill, 2016, Case Studies in Finance, McGraw-Hill/Irwin, 8th Edition.

Additional readings may be assigned by the instructor as the course progresses. Please note that slides used in class are also required. Teaching materials will be available in the “Teaching resources on Virtuale” section, accessible from the course webpage.

Teaching methods

Traditional lectures, reading of research papers.

Assessment methods

The skills of students will be tested with a written exam.
Final class test. – It will include 15 multiple-choice questions (15 points, i.e., 1 point each; wrong and missing answers are valued at zero), 4 short problems (8 points, i.e., 2 points each), and a written exercise (7 points). The time allowed will be 90 minutes.

Case study. – During the last class meeting, we will discuss a valuation case study. You will be asked to actively participate in the class discussion and prepare a PPT presentation. You will be asked to submit your presentation the day before the last class meeting. This will be teamwork, and each presentation will be assigned up to 3 points. More precise guidelines for this class section will be available on “Virtuale” in due course.

During the examination use of financial calculator is allowed. Use of any other material, unless authorised, is prohibited. Violation of those rules means removal from the classroom and the termination of the examination.

To take the written exam it is mandatory to register on-line through the AlmaEsami system; if you experience problems in the exam registration process please contact the instructor.

The minimum required to pass the exam is 18 / 30.

Grading structure:

• <18 insufficient

• 18-23 sufficient

• 24-27 good

• 28-30 very good

• 30 cum laude excellent

Case study. – During the last class meeting we will be discussing a valuation case study. You will be asked to actively participate to the class discussion, also preparing a PPT presentation. You will be asked to submit your presentation the day before the last class meeting. This will be a teamwork, and each presentation will be assigned up to 3 points. More precise guidelines for the this class section will be available on “Virtuale” in due course.

 

 

Teaching tools

Lecture slides and additional readings which may be assigned by the instructor as the course progresses.

Office hours

See the website of Antonio Carlo Francesco Della Bina