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Bibliography mandatory
Bibliography not mandatory
Summary Teaching Assignment
Academic Year 2018/2019
School School of Industrial and Information Engineering
Course 052802 - FINANCE LAB + CORPORATE FINANCE
  • 052801 - CORPORATE FINANCE
Cfu 5.00 Type of Course Module
Lecturers: Titolare (Co-titolari) Giudici Giancarlo

Programme Track From (included) To (excluded) Course
Ing Ind - Inf (Mag.)(ord. 270) - BV (479) MANAGEMENT ENGINEERING - INGEGNERIA GESTIONALE*AZZZZ097749 - CORPORATE FINANCE B
052802 - FINANCE LAB + CORPORATE FINANCE

Goals
The course objectives are as follows:
  • Analyzing the financial structure and governance decisions of a company
  • Learning how the company may raise money to finance growth, projects and investments, and which instruments can be used
  • Analyzing the characteristics of financial securities, and their valuation methodologies
  • Analyzing derivatives contracts, their valuation methodologies and how they can be used to hedge company liabilities

The course fits into the overall program curriculum pursuing some of the defined general learning goals. In particular, the course contributes to the development of the following capabilities:

  • Understand context, functions, processes and instruments in firm and investment financing

  • Design solutions applying a scientific and engineering approach (Analysis, Learning, Reasoning, and Modeling capability deriving from a solid and rigorous multidisciplinary background) to face problems and opportunities in corporate finance

  • Develop new ideas and solutions in financial modelling

 


Expected learning outcomes
  • Comprehension of the logics of the firm financial structure, selecting between equity and debt

  • Demonstrate the knowledge of the characteritics and pricing models of debt and equity securities

  • Capability to evaluate the effects of financing decisions on firm and investment appraisal, designing solutions and models

  • Demonstrate the knowledge of the characteritics and pricing models of derivatives (forward contracts and options) and their use in hedging strategies

Topics
The course of Corporate Finance (5 cfu) analyzes the process of corporate investments’ financing through the selection of security typology, capital issuance, corporate governance and hedging.
 
Topics:
  • Financial structure: Modigliani & Miller propositions, debt vs. equity, agency costs
  • Debt raising: bonds (valuation, duration, term structure of interest rates, volatility)
  • Equity raising: shares (valuation)
  • Interactions between value and financing (adjusted present value, wacc)
  • Derivatives (forward contracts, options)
The course may be taken as optional by students enrolled in any concentrations of the course of Management Engineering.
The course is integrated with 'Finance Lab' (10 cfu) in the second semester for students enrolled in the Finance concentration.

 


Pre-requisites

- Knowledge of cash flow discounting methodologies

- Knowledge of the balance sheet structure (A&L, profit&losses, cash flow statement)

- Knowledge of the Capital Asset Pricing Model (CAPM)


Assessment

Written text and oral text (optional).

The written text will consist of 3 numerical exercises, in order to test the capability of the students to reach the expected learning objectives.

 


Bibliography
Risorsa bibliografica facoltativaBrealey Myers, Principles of Corporate Finance

Software used
No software required

Learning format(s)
Type of didactic form Ore di attività svolte in aula
(hh:mm)
Ore di studio autonome
(hh:mm)
Lesson
32:30
48:45
Training
17:30
26:15
Computer Laboratory
0:00
0:00
Experimental Laboratory
0:00
0:00
Project Laboratory
0:00
0:00
Total 50:00 75:00

Information in English to support internationalization
Course offered in English
Study material/slides available in English
Textbook/Bibliography available in English
It is possible to take the examination in English
Support available in English
schedaincarico v. 1.10.0 / 1.10.0
Area Servizi ICT
15/07/2024