93381 - Corporate Finance

Learning outcomes

At the end of the course, students will have acquired an understanding of the issues related to firms’ investment and financing decisions (with particular reference to companies listed on regulated markets, typically large-sized firms). These decisions are examined from the perspective of shareholder value creation. In particular, students will master the core principles of corporate financial management and will be able to address two fundamental questions in firm management:

– which investments should a firm undertake?

– how should a firm raise the funds required to finance those investments?

Course contents

• Corporate finance and firm objectives 
• Present value calculation and principles of bond valuation
• Financial analysis and planning
• Equity valuation
• Net present value and other investment appraisal methods
• Investment decisions using the net present value method
• Risk and return, portfolio theory, and the Capital Asset Pricing Model
• Risk and cost of capital
• Venture capital, IPOs, and capital increases
• Dividend policy
• Does capital structure matter?
• How much should a firm borrow? 
• Valuation and financing decisions

Readings/Bibliography

The recommended textbook is the following:
- Brealey, R., Myers, S., Allen, F., Edmans, A., e S. Sandri, 2024, Principi di Finanza Aziendale, McGraw Hill Italia, 9th edition (chapters 1–11 and 14–18).

For applications and examples, students may refer to the following exercise book:
- Bajo, E., Barbi, M., e S. Sandri, 2024, Finanza aziendale: Problemi, esercizi, domande, Maggioli Editore.

Teaching methods

Lectures and tutorials.

Assessment methods

Assessment is based on two written exams (midterms), each graded on a scale of up to 16 points. Registration on AlmaEsami is mandatory in order to sit each exam. Each midterm lasts 30 minutes. During all exams, the use of financial calculators and a formula sheet provided by the instructor is allowed.

Each midterm consists of four short exercises (maximum score: 8 points, 2 points per exercise) and eight multiple-choice questions (1 point for each correct answer). No penalties are applied for incorrect answers in the multiple-choice section, and only one option is correct.

The scores obtained in the two midterms are summed to determine the final grade, which is expressed on a 30-point scale. Alternatively, students may choose to take the exam in a single total exam at the end of the course, consisting of eight short exercises (maximum score: 16 points) and sixteen multiple-choice questions. The duration of the total exam is 60 minutes.

Students may renounce the grade obtained in the first midterm. In this case, the student will subsequently be required to sit the comprehensive exam.

Grades are automatically recorded on AlmaEsami. Any renunciation of a positive grade must be communicated in writing (via email) within one week from the date on which the results are made available.

Grade classification:

- <18: fail
- 18-23: satisfactory
- 24-27: good
- 28-29:very good
- 30 e 30L: excellent

Teaching tools

Teaching materials will be available on Virtuale (virtuale.unibo.it).

Office hours

See the website of Valentina Febo