Course teached as: B018849 - CORPORATE FINANCE Second Cycle Degree in FINANCE AND RISK MANAGEMENT
Teaching Language
English
Course Content
Course description
Relying on the essential knowledge acquired during your “Essential of Corporate Finance” course (Finanza aziendale/Intermediari Finanziari e Finanza Mod. 2), this course is approaching the discipline from an applied perspective. After revising the courses above mentioned, students will be asked to use the concepts in applied assessments. As a consequence, this course is an advanced course in corporate finance.
The first part of the course has the following objectives:
- Developing an understanding of the advanced tools that are used to value investment projects and companies (capital budgeting).
- Understanding the issues involved in how firms should raise funds for their real investments (financing).
Applied Corporate Finance: A User’s Manual (Third Edition) by Aswath Damodaran
Learning Objectives
TEACHING OBJECTIVES
- Evaluating the investment and financing decisions.
- Evaluating the firm’s dividend policy.
After completing this course, the student will be able of:
- Choosing the investment according the value maximization criteria;
- Determining the “optimal” capital structure”: mix of debt and equity for each business;
- Determining the dividend yield to be returned to the shareholders and the buyback policy;
Prerequisites
Elements of Corporate Finance
Teaching Methods
LECTURES, Take home assigments, Seminars
Further information
Rules of Engagement
• Rules on individual work
o All exams and assignment are strictly individual work.
o If you miss the final due to health problem, you will be evaluated based on a oral exam.
• Rules of group work:
o Pick your own groups.
o All group work will be self policed, except in extreme circumstances.
o In case the group project is graded, there will be one grade per group.
ATTENDANCE
Class attendance is essential to your success in this course. In class interaction and examples enrich the hands-out and the book materials and it allows you to have a better understanding of the discipline. Attendance will be determined by the signature on the periodically circulated attendance roster.
Type of Assessment
Exams and grading - Frequentanti
The course grading is based on individual assignments all along the semester and a final exam. The final is a two hours written exam. The date of the final exam will be announced during the course.
The problem sets are intended to help the student to develop a better understanding of the topics and to prepare the final exam. The problem set will be handed in class and are due one week after they are distributed. Problem set are individual assignment. Furthermore, during the course the students are asked to group in bunch of 5 in order to solve a short case study on investment analysis. One assignment randomly selected among the one distributed will be graded.
All problem sets and case study must be submitted to access the final exam.
The weights I will be using to come out with your final grade are the following:
Weights
Take-home assignment 30%
Final exam 70%
NON FREQUENTANTI
In case you cannot attend the classes the exam will be oral with a preliminary problem set to be solved in a written form
Course program
Corporate Finance 6 CFU Prof. Oliviero Roggi
CLASS ATTENDANTS
Required material for preparation:
TEXTBOOK: Damodaran, Applied Corporate Finance: a user's manual - 3rd edition, Wiley (REQUIRED)
Slides set (handout to be downloaded from Lore.com – Class attendants only)
Topics:
- Principles of corporate finance and corporate governance Chapter 1 and 2
Slides set: F01
Investment decisions
- The Investment Principle: Risk and Return Models Chapter 3
Slides set: F02
- From Risk & Return Models to Hurdle Rates: Estimation Challenges Chap. 4 Slides set: F02
Measuring Investment Returns:
- The mechanics of investment analysis Chapter 5 (from p. 182 to p. 239) and 6 (from p. 260 to 293)
Slides set: F03
Financing decisions
- Capital Structure: The Choices and the Trade off Chapter 7
Slides set: F04
- Capital Structure: Finding the right financing mix Chapter 8
Slides set: F04
- Capital structure: the financing details Chapter 9
Slides Set: F05
- Dividend policy Chapter 10
Slides Set: F06
- External Seminars
Slides set: FXX
Other materials:
Review of (US) accounting -
Slides set: Appendix 01
OTHER STUDENTS ( NON ATTENDING)
TEXTBOOK: Damodaran, Applied Corporate Finance: a user's manual - 3rd edition, Wiley (REQUIRED) CHAPTERS 1 TO 10.
No slides are required.