48144 - Corporate Finance

Academic Year 2010/2011

  • 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. 8409)

Learning outcomes

The course provides a framework for understanding and analyzing investment and financial decisions of corporations. Lectures and readings provide an introduction to present value techniques, capital budgeting, company valuation, capital structure decisions and corporate cost of capital.

Most of the topics presented during the course will also be analyzed and studied using a case study approach.

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)
-Capital budgeting (Criteria for investment decision, cash flow estimation)
-Optimal capital structure and the cost of capital (Modigliani-Miller Theorem, trade-off theory, WACC, adjusted net present value)

Readings/Bibliography

Brealey R., Myers S. and F. Allen, "Principles of Corporate Finance”, 10/e, 2011, McGraw-Hill

Assessment methods

Valuation is based on a written exam.

Office hours

See the website of Emanuele Bajo