93289 - Corporate Finance

Learning outcomes

By the end of the course, students will have developed a solid understanding of the core principles of corporate finance. They will be able to analyze a firm’s financial management and evaluate how investment and financing decisions affect shareholder value. More broadly, students will understand that maximizing equity value, as a key objective of management, requires considering the long-term consequences of corporate decisions and their implications for all stakeholders.

Course contents

- Corporate finance and the objective of the firm
- Present value calculations and bond valuation
- Financial analysis and planning
- Stock valuation
- Net present value and other investment decision criteria
- Investment decisions using the net present value method
- Risk and return
- Portfolio theory and the Capital Asset Pricing Model
- Risk and the cost of capital
- Forms of financing and the value of voting rights
- Stock market listings and seasoned equity offerings
- Payout policy
- Does capital structure matter?
- How much should a firm borrow?
- Valuation and financing decisions

Readings/Bibliography

The recommended textbook is:

- Brealey, R., Myers, S., Allen, F., Edmans, A., and S. Sandri, 2024, Principi di Finanza Aziendale, McGraw Hill Italia, 9th ed., Chapters 1-7 and 9-18.

For applications and examples, students are advised to use the following exercise book:


- Bajo, E., Barbi, M., and S. Sandri, 2024, Finanza aziendale: Problemi, esercizi, domande, Maggioli Editore.

Teaching methods

Lectures, seminars and applications, case studies.

Assessment methods

Students’ preparation will be assessed through a written exam. Registration on AlmaEsami is mandatory in order to sit the exam.

The exam will last 100 minutes and will consist of 6 multiple-choice questions worth 1 point each, with no penalty for incorrect answers and only one correct answer among the four alternatives provided; 4 short exercises worth up to 2 points each; 2 more structured problems worth up to 5 points each; and 2 open-ended questions worth up to 4 points each. The overall exam score is expressed out of 32 points. If the overall score exceeds 30, cum laude will be awarded.

Students may reject a passing grade, i.e. a grade equal to or higher than 18, and retake the exam during the official exam sessions scheduled according to the academic calendar. The use of financial calculators and of a formula sheet provided by the instructor is allowed. No other materials may be used.

Students may take the exam in two partial exams. Each partial exam will last 50 minutes and will consist of 3 multiple-choice questions, 2 short exercises, 1 problem, and 1 open-ended question, assessed as described above. The final score will be the sum of the scores obtained in the two partial exams. Students may reject the score obtained in the first partial exam. In this case, they will subsequently have to take the full exam.

Grades are recorded automatically on AlmaEsami. Any rejection of a passing grade must be communicated in writing, by email, within one week from the day on which the results become available.

Grades correspond to the following levels of achievement: below 18: fail; 18-23: sufficient; 24-27: good; 28-30: very good; 30 cum laude: excellent

Teaching tools

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

Office hours

See the website of Massimiliano Barbi