75363 - Corporate Finance

Learning outcomes

The course aims to provide students with fundamental concepts, principles, and approaches of corporate finance, enabling them in solving related problems. The perspective is the firm value maximization. The course focuses on fundamental principles that guide corporate manager decisions on financing and investing. Furthermore, it provides students with techniques for quantitative analysis applied in portfolio management and risk-return relation measuring. After taking this course, students are expected to be able to fully and critically understand the basic theory and techniques of investors and managers decisions making.

Course contents

Topics covered in this course include:

- 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. Any edition is fine.

The last edition is:

Brealey, R.A., Myers, S.C., Allen F., Edmans, A., 2023, Principles of Corporate Finance, 14/e, McGraw-Hill.

Teaching methods

Theoretical lectures, applications, exercises and case studies.

Assessment methods

Written exam.

Exams will last 60 minutes. A +1 bonus will be assigned to students turning in the exam within 24 minutes.

Exams will be made of one exercise (20pts) and 5 multiple choice questions (2pt each).

There is no penalty for wrong answers in multiple choices questions.

Office hours

See the website of Giulia Baschieri