The objectives of the course are:
i. To give students the capacity to understand the theory and the principles of corporate finance
ii. To provide students with a set of operative tools to apply in the business industry
iii. To give students an understanding of finance and the financial decision facing investors and companies
iv. To teach students how to apply clear, logical, and rational analysis to various areas of finance
After completing the course, the students are expected to:
i. Have developed an understanding of the basic and advanced principles of corporate finance
ii. Understand the strategic importance of capital structure and financing decision making
iii. Understand how to value companies
iv. Understand how companies raise external finance
The course is organized in 3 teaching units.
1) Capital structure
Capital structure and firm value in the absence/presence of corporate tax
The Trade-off theory
2) Business Valuation
Foundations of value and fundamental principles of value creation
Key methods and approaches to firm valuation
Discount Cash Flow (DCF) models
Valuing companies using multiples (comparables, peers approach)
3) Security issuance
Initial Public Offerings
The course combines traditional lectures with practical sessions during which the students will have the possibility to familiarize themselves with the techniques presented in the lectures. Furthermore, workshops and case studies allow participants to apply the techniques introduced and test their understanding of corporate finance.
The final assessment will be composed of: (i) 50% written test (ii) 50% applied group assignments on predefined issues in corporate finance
The exam rules are the same for both attending students and non-attending students. Therefore, non-attending students can also access group work, as long as they are able to share the activity with the students attending.