A83152 Corporate Finance

At the end of the course the student will be able:

1. To analyse the core concepts of corporate finance and the relationship with the other corporate areas;
2. To design investment and financing policies;
3. To identify the decision criteria for maximizing corporate’s capital structure;
4. To carry on an M&A activity and to use company’s valuation methods;
5. To identify the main financial sources for a firm, focusing on bank’s activity.

Information Literacy

At the end of the course the student will be able:

1. To find information on the economic sectors;
2. To find economic and financial information on businesses;
3. To use financial statements databases;
4. To develop a library research strategy;
5. To set out a bibliography for reports.

At the end of the course the student will gain knowledge about the foundations of corporate finance, the optimal capital structure, cash management and financing choices, the time value of money and the company valuation techniques.

Information literacy

At the end of the course the student will be able to analyze a topic, produce research questions and write a bibliography to verify hypotheses.

Financing policies are fundamental for firms in every step of their life cycle (development, change or crisis). Financing activity, therefore, must be continuous and systematic. In order to identify the best financing and investment policies, to take Working Capital decisions and to be able to carry on an M&A activity, course will provide appropriate coverage of the following topics:

1. Financial statements analysis, asset conversion cycle and Working Capital management;
2. Financial ratio analysis and cash flow calculation and interpretation;
3. The investment decision, time value of money, actualization and capitalization;
4. Capital budgeting techniques: NPV and IRR;
5. The financial decision, risk and return relationship, Portfolio Theory and Capital Asset Pricing Model;
6. The cost of capital: cost of debt, equity and WACC;
7. The optimal capital structure: theory and empirical evidence;
8. Basic of company’s valuation and techniques (Discounted Cash Flow analysis and Comparables analysis), an overview of Mergers and Acquisitions market;
9. Enterprises and financial institutions: banks and commercial bank operations.

The aim is to provide students thorough knowledge of these issues, presenting characteristics, functioning, data and exercises.

Information Literacy

The course will provide appropriate coverage of the following topics:

1. Documents and data for sector analysis;
2. Research method: library research;
3. Description of subjects through category analysis of terms employed in texts.

The first part of the course (Sessions 1-8) focuses on financial statement analysis (1-4) and the financing decision (5-7). Attending students can take the mid-term written exam at Session 8. Concerning the second part (Sessions 9-15), the topics covered are the investment decision (9-10) and basic of company’s valuation (11-12). Attending students that took the first exam (mark at least equal to 16/30) can take the second written exam during the last session.

Course overheads will be published on the website of the course on “my.liuc.it”.

Information Literacy

During the workshop the most important data banks and information sources providing business information will be introduced.
Groups of students will have to choose a topic, build a terminological map, focus on a specific aspect and finally develop a research hypothesis. At this stage an individual advice session with the library reference personnel is included. The last step will be setting out a bibliography for a report answering the research hypothesis developed by each student on their own. Testimonials could be invited to participate to classes.

Attending students can take the mid-term written exam. They can take the second written exam only if the mark of the first one is at least equal to 16/30. Attending students, whose mark in the mid-term written exam is not sufficient, have to take a global oral exam. It is possible to take global oral exam at the last session, during the second written exam. Students that don’t pass second written exam have to take a global oral exam.

Students must pass Information Literacy's exam to record the mark.

Information Literacy

Final written examination.

Students have to be present for at least 75% of class. They have to hand in all the assignments.