The course is focused on the most important aspects of corporate finance in order to determine their role in the creation of shareholder value. The main goal of the program is to offer both theoretical analysis and operative tools.
In particular, theoretical models are analysed together with their applications in order to actively deal with issues related to the corporate finance activities of an operating firm: from investing decisions to the determination of cost of capital, from financing decisions to the choices in capital structure of the firm.
The whole structure of the course is applied, case based and oriented to develop capabilities to held methodologies and practices used on the financial markets.
Syllabus
1. Value
Introduction to corporate finance
Valuing bonds and common stocks
Net Present Value and other investment criteria
2. Risk
Introduction to risk and return
Portfolio Theory and the Capital Asset Princing Model
Risk and capital budgeting
3. Financing decisions and market efficiency
Efficient markets and behavioral finance
An overview of corporate finance: long-term financing decisions. Debt or equity.
4. Payout policy and capital structure
Payout policy
Financing decision, capital structure and the cost of capital
Investment and financing decisions
5. Options
How firms employ options to limit their risk
Valuing options
6. Financing decisions
Venture capital and private placement
Credit risk and the value of corporate debt
The many different kinds of debts. Short or long-term debt.
7. Financial planning and working capital management
The four principal types of current asset: inventory, account receivables, cash balances, working capital
8. Risk management
Managing risk: how companies can use financial contracts to protect against various hazards. Insurance policies, forward and futures contracts, swaps.
Managing international risk: currency risk and international capital investment decisions
For Financial Analysis course please refer only to nn. 1 - 4 (included).