- Docente: Emanuele Bajo
- Credits: 6
- SSD: SECS-P/09
- Language: English
- Teaching Mode: Traditional lectures
- Campus: Bologna
- Corso: Second cycle degree programme (LM) in Quantitative Finance (cod. 8854)
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
-Introduction to Financial Analysis (Financial Statement, financial ratios)
-Overview of corporate financing
-Principles of valuation (Present value, risk and return, discounted cash flow)
- Company valuation
-Optimal capital structure and the cost of capital (Modigliani-Miller Theorem, trade-off theory, WACC, adjusted net present value)
Readings/Bibliography
Ivo Welch, Corporate Finance: 4th Edition, 2017
Teaching methods
Lectures will encourage students to develop a critical view on financial phenomena linking the presented theories to current standard practice. During classes financial data freely available from the web will be extensively used for this purpose.
Assessment methods
Valuation is based on a written exam.
The exam will include one practical case and one theoretical section. The practical case is aimed to assess the ability to put in practice corporate finance techniques; the theoretical section is intended to evaluate the level of understanding and knowledge of the foundations of corporate finance. The practical case will be evaluated maximum 20/30 and the theoretical section 10/30.
Teaching tools
Teaching tools will be blackboard and slides.
Office hours
See the website of Emanuele Bajo