73422 - Crash Course in Corporate Finance

Academic Year 2018/2019

  • Moduli: Marco Bigelli (Modulo 1) Nataliia Bychkova (Modulo 2)
  • Teaching Mode: Traditional lectures (Modulo 1) Traditional lectures (Modulo 2)
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in Business Administration (cod. 0897)

Learning outcomes

The course aims to cover the most important corporate finance topics related to the investment and financial decisions by the firm. It therefore gives the basics on mathematical finance, investment decisions, portfolio theory, the optimal capital structure and the cost of capital for the firm.

Course contents

First module (20 hours)

  1. 1. Introduction in Corporate Finance: corporation, corporate governance, financial manager. 

    2. Financial statements and analysis fundamentals.

    3. The time value of money: formulas for financial valuations.

    4. Instruments for making investment decision: Discounted Payback, IRR and NPV rules. 

    5. Valuation of equity: fundamentals of discounted cash flow techniques.

Second module (10 hours)

  1. Risk and diversification. Market efficiency. Portfolio theory. CAPM. 
  2. The optimal capital structure and the role of debt. 
  3. Case studies in excel to be solved in groupworks in class

Readings/Bibliography

The text for the course is Brealey, Myers, Allen (henceforth also BMA), Principles of Corporate Finance – 10th Global Edition, McGraw-Hill.

 

 

For the final valuation test, it could be useful to practice on the following exercise book:

Kevin King, Corporate Finance Exercise Book, 2014 edition, available on the international kindle-Amazon platforms, as, for example: http://amzn.to/1juVOVO

Teaching methods

Lectures with slides, excel files and final case studies to be solved in excel

Assessment methods

Final valuation test with some multiple choices, some short exercises and a simple capital budgeting exercise

Teaching tools

Slides and excel files with solutions.

Office hours

See the website of Marco Bigelli

See the website of Nataliia Bychkova