75363 - Corporate finance

Learning outcomes

The goal of this course is to provide students with the fundamental tools to understand financial decision-making in the modern corporation. Topics include: capital budgeting/corporate investment, capital structure, corporate sources of funding, dividend policy, corporate contingent claims for financial risk management. The course frames these topics within the standard theories of risk and return, valuation of assets and market structure.

Course contents

Financial Planning and Analyzing financial performance

Capital budgeting (NPV, IRR and payback period)

Capital budgeting and risk (asset beta and equity beta)

Financing decisions and the firm cost of capital

Capital issuing (seasoned equity offers, IPOs and venture capital)

Corporate risk management

 

Readings/Bibliography

Brealey, Myers, Allen, Principles of Corporate Finance (12th Edition). McGraw Hill International.

Chapters: 1-10; 14-19; 28-29

Teaching methods

The course will be divided in theoretical lectures and applied sessions dedicated to solving case-based problems. During the course it will be made large use of real-data gathered from financial web sites.

Whiteboards and slides will be mixed to deliver the content of the course.

Assessment methods

Exam will take place during the official sessions and it will be a comprehensive final exam including the theoretical and the technical/practical part. The exam will include one practical case and one theoretical section. The practical case is aimed to assess your ability to put in practice corporate finance techniques; the theoretical section is intended to evaluate your 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.

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom and Qualtrics. Detailed instructions on how to manage and hand in the online exam will be available on the VIRTUALE platform.

 

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

 

Teaching tools

Dedicated page on the VIRTUALE platform containing:

• News and updated information
• Lectures slides
• Excel files

Office hours

See the website of Emanuele Bajo