Student guide International Program A.Y. 2006/07

1. To provide an introduction to the core concepts and key topic areas of corporate finance and to give a general framework of financial problems within the company;
2. to understand the relationship between firm and financial market with reference to investment and financing policies;
3. to identify the decision criteria for maximising corporate's capital structure;
4. to analyse the M&A activity and company's valuation methods.

Introduction to the foundations of corporate finance: role and objectives.

1. Financial statements analysis:
1.1 asset conversion cycle and Working Capital management
1.2 introduction to financial ratio analysis;
1.3 cash flow calculation and interpretation;

2. The investment decision:
2.1 time value of money;
2.2 actualization and capitalization;
2.3 capital budgeting tecniques: NPV, IRR.

3. The financial decision:
3.1 risk and return relationship. Portfolio Theory and Capital Asset Pricing Model: basics;
3.2 the cost of capital: cost of debt, equity and WACC;
3.3 the optimal capital structure: theory and empirical evidence;
3.4 the use of leverage: leveraged buyouts.

4. Basics of company's valuation:
4.1 the Mergers and Acquisitions market: an overview;
4.2 company's valuation techniques: Discounted Cash Flow analysis and Comparables analysis.

Examinations:
Only students attending the course will have the written exam. All others will take an oral exam. Incorrect English or spelling will not be penalised.

Reading list:
- Brealey, R., Myers, S., Principles of Corporate Finance, Mc Graw Hill, 2000
Additional readings will be suggested during the course. Course overheads will be available on the Internet.