Teaching code

4S00495

Teacher

Alex Sclip

Coordinator

Alex Sclip

Credits

9

Language

Italian

Scientific Disciplinary Sector (SSD)

SECS-P/09 - CORPORATE FINANCE

Period

secondo semestre (lauree) dal Feb 21, 2022 al Jun 1, 2022.

Lessons timetable Moodle Seminars 0

Learning outcomes

The course aims to provide knowledge for corporate decisions and is mainly divided into two parts. In the first part, in the perspective of non-financial companies, the characteristics of the net present value in capital budgeting decisions, the choices of financial structure, short and medium-long term financing instruments, dividend policy, international trade financial instruments, instruments for hedging financial risks (exchange rate risk and interest rate risk) are presented. In the second part, the Course aims to provide a general overview of the elements characterizing the financial system, by analysing the structure and functions of the markets, the credit intermediation and securities brokerage services. At the end of the course the student is able to apply the knowledge to make business decisions relating to problems of corporate finance, investments and financing.

Program

The course can be divided in two parts. The first aims to provide the basic knowledge of: financial analysis, cash flow analysis, financial planning, and financing instruments. The second part aims to provide a basic knowledge about investment and financing policies.
Part I
- Quantification of capital needs and their determinants: invested capital
and operating working capital;
- Balance sheet and financial ratios analysis
- Cash flow analysis: objectives, meaning and implementation;
- Financing instruments
- Economic and financial forecasting: objectives, meaning, correlation
with business strategies, assumptions;
- The implementation of the budget;
- Financial Leverage;
- Operational leverage;
Part II
- Investment valuation methods: payback period, discounted payback
period, net present value, internal rate of return;
- The quantification of the relevant project cash flows and the related
cash flow statement;
- The weighted average cost of capital (WACC);
- Portfolio risk and return: the diversification effect;
- The Capital asset pricing model and the Security market line;
- The dividend discount model;
- The estimate of the cost of debt;
- The theories of Modigliani Miller without and with taxes;
- Beta levered and unlevered;
- Alternative theories to Modigliani Miller.

Bibliography

Examination Methods

Written 90 minutes.