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Program

EN IT

Updated A.Y. 2021-2022

LEARNING OUTCOMES: The course analyses corporate finance issues related to measuring the hurdle rates, select the best financing option and identify the proper divided policy. Students will be able to understand strategic and practical investment/debt issues and to implement (through excel) standard capital budgeting technique and financial debt planning policy.

KNOWLEDGE AND UNDERSTANDING:  The student will understand the issues to the financial planning and the impact of the financial choice on the performance of the firm and to construct a report on the value of the company.

APPLYING KNOWLEDGE AND UNDERSTANDING: Main skills that a student is expected to have at the end of the course are: 1. Defining the hurdle rate for different types of investment 2. Measuring the investment return 3. Identify the best financial structure and the strategy of adjustment to the target leverage 4. Evaluate existing and expected investments in order to identify the proper divided policy 

MAKING JUDGEMENTS:  Students will be able to identify key information necessary for a financial evaluation of an investment opportunity and select among different types of financial solutions available  and to write a report on the value of the company.

COMMUNICATION SKILLS: Students will be able to analyse a summarize financial data for an investment opportunity and construct and present reports that summarize the key information necessary for a financial strategy decision.

LEARNING SKILLS: Students are expected to learn how to use excel tools for analysing investment opportunities and selecting less expensive financing solutions starting from real market data.

PRE-REQUIREMENTS: Students are required to have basic knowledge of mathematical finance (interest rate and present value) and balance sheet analysis (Financial Statement) and excel Students that do not have such skills will have some video-lectures on the moodle platform that they are expected to follow before the starting for the course.

TOPICS:

- Corporate finance and corporate governance

- Risk measuring and behavioral finance issues

- Risk free rate and rating

- Equity risk premium

- Risk parameters

- Weighted Average Cost of Capital

- Cash Flow Forecast

- Cash Flow risk

- Financial structure principles

- Life cycle and financial strategy

- Value of a levered financial company

- Target leverage and speed of adjustment

- Dividend policy and instruments

- Dividend matrix and peer group analysis

- Firm valuation principles and methodology

- Real data analysis and valuation principles

- Relative valuation

- Special cases of company valuation

 

TEXTBOOK: Damodaran A. (2014), Applied Corporate Finance, Wiley (Chapters 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)