48144 - Corporate Finance

Learning outcomes

The aim of this course is to provide the students with a set of analytical tools and techniques useful to explore the most relevant important investment and financing decisions taken by firms at different stages of their life cycle. At the end of the course students are able to: (a) select the best business investment strategies a firm should undertake; (b) calculate and interpret the company’s cost of capital; (c) identify the main financing sources available to companies.

Course contents

Topics covered in this course include:

- Computing and interpreting financial ratios, analysing balance sheet in a financial perspective;

- Security valuation (bond and stocks);

- Corporate value creation: project valuation and capital budgeting;

- Firm valuation;

- Cost of capital, measuring risk and return;

- Equity financing (Venture Capital, IPO, SEO);

- Determinants of capital structure decision;

- WACC and APV.

Readings/Bibliography

Brealey R., Myers S. and F. Allen, Principles of Corporate Finance. Supplementary study material - such as slides, papers, exercises - will be available in the course web page.

Teaching methods

Theoretical lectures, applications.

Assessment methods

Written exam at the end of the course (2 Mid Term exams or 1 full exam).

Teaching tools

Slides provided by the instructor before the class.

Office hours

See the website of Andi Duqi

See the website of Karl Hakan Jankensgard