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## Syllabus

EN IT

### Learning Objectives

LEARNING OUTCOMES: The objective of the course is to provide candidates with fundamentals of Corporate Finance and the main tools to perform business valuation.

The lessons generally will deal with explanation of main corporate finance and theoretical valuation models, identification of valuation issues and analysis of possible approaches from academic/professional best practises.

### Prerequisites

Financial mathematics, Excel application of mathematics

### Program

Part 1: Basic principles of Corporate Finance (20h)
A) Introduction to Corporate Finance.
B) Net Present Value and other investment criteria
C) Introduction to risk and return
D) Portfolio Theory and the Capital Asset Pricing Model
E) Risk and the Cost of Capital
F) Capital Budgeting
G) Payout policy and capital structure
H) Introduction to Options

A) The Business Valuation. Price and Value. Evidences from the market. Main valuation methods.
B) Introduction to Financial methods. The theoretical rationale (Modigliani-Miller, Gordon
formula). Discounted Cash Flow Method (DCF).
C) Approaches for the determination of main drivers for DCF (FCF in explicit period, Normalized FCF, Cost of Capital, g).
D) More on Cost of Capital: Levering and Unlevering methods (Hamada formula). Small Cap Risk Premium. Methods for determination of other inputs of WACC calculation (weights, kd, etc..).
E) Valuation of M&A Transactions.
F) Valuation of groups and shareholdings.

### Books

Brealey, Myers, Allen - "Principles of Corporate Finance" - McGraw-Hill

M. Vulpiani - "Special Cases of Business Valuation" - McGraw-Hill

### Exam Rules

The exam includes a written test. It consists of solving problems regarding the topics addressed and answering theoretical/practical questions, with multiple choice and open-ended questions, including a practical exercise. The application questions will be evaluated based on the correctness of the result obtained; the theoretical questions will be evaluated based on knowledge of the sources and essential contents of the theories. The evaluation will be expressed over 30. Students pass the exam with a final grade of no less than 18.

o Not suitable: significant deficiencies and/or inaccuracies in knowledge and understanding of the topics; limited analysis and synthesis skills, frequent generalizations.
o 18-20: just sufficient knowledge and understanding of the topics with possible imperfections; Sufficient analytical, synthesis and independent judgment skills.
o 21-23: Knowledge and understanding of routine topics; Correct analysis and synthesis skills with coherent logical argumentation.
o 24-26: Fair knowledge and understanding of the topics; good analytical and synthesis skills with rigorously expressed arguments.
o 27-29: Complete knowledge and understanding of the topics; remarkable analytical and synthesis skills. Good independent judgement.
o 30-30L: Excellent level of knowledge and understanding of the topics. Remarkable analytical and synthesis skills and independent judgement. Arguments expressed in an original way.