Insegnamento a.a. 2024-2025

The main topics that are addressed in the course are:

- The foundations of the theory of finance 

- The logic of market values ​​and the theory of value 

- The logic of finance applied to management 

- Relevant flows from a financial perspective 

- Economic and contractual relations between shareholders and lenders: the distribution of value 

- The concept of risk in finance 

- The cost of debt capital: probability of bankruptcy, interest rate and costs of bankruptcy 

- The cost of capital: real and nominal flows - The effect of inflation 

- The CAPM approach and the meaning of beta 

- The tax effect of the debt and the WACC, the APV model 

- Determination of the optimal financial structure: reference models and solutions 

- The dividend policy and the market value of equity: the dividend discount model 

- Corporate governance and corporate financial choices: opportunistic behaviors 

- The rating of companies 

- Credit risk pricing 

- Debt financing instruments and "hybrid" financial instruments 

At the end of the course the student, having deepened, also with actual applications, the knowledge underlying the theory of corporate finance, will be able to use an advanced theoretical and applicative instrumentation that allows him to develop a complete scheme of analysis and solution of the most important issues regarding the valuation of shares and bonds and the definition of the financial structure of companies, through the determination of adequate parameters, using both the most consolidated techniques and the most innovative and advanced application models.

Autonomously build complex financial models for the valuation of shares and bonds that use different methods and parameters, based on a solid knowledge of the theoretical elements associated with them. Autonomously define the measure of the cost of capital to be used in the evaluation processes and examine the real companies on the basis of the most important areas of financial management such as: Cash flow analysis, determination of the cost of debt capital, calculation of beta and cost of equity capital, determination of the WACC and enterprise value, valuation based on the dividend discount model.

• Lectures
• Guest speaker's talks (in class or in distance)
• Practical Exercises
• Individual works / Assignments
• Collaborative Works / Assignments

• The guest speech will be given by an external expert in company rating procedures and will aim to provide an applicative explanation of the credit risk assessment process 
• The exercises (2) will be based on the practical application of the methodologies illustrated during the lessons in order to provide students with the knowledge necessary for application in the professional field 
• The group assignment (optional) represents an opportunity to apply all the principles analyzed during the course to the real case of a listed company for which an analysis will be developed in line with those developed by professional financial analysts

ATTENDING 

Written exam with open-ended questions / exercises: ability to describe and critically discuss the main theoretical models illustrated and discussed during the lessons and ability to calculate the main cost of capital parameters with the aim of identifying the value of the different components of the business value structure; 

Written test with closed-ended questions: ability to recognize the basic concepts and notions illustrated during the course, providing proof of the use of the financial logic tools necessary for choosing alternative options; 

Evaluation of the result of the group assignment: ability to use, with reference to a real case, the entire set of knowledge developed during the course, with reference to the analysis of the relevant cash flows, to the construction of the cost of debt capital, the application of the CAPM in order to identify the cost of equity capital and subsequently the weighted average cost of capital, and the application of the unlevered method and the dividend discount model in determining the equity value 

NOT ATTENDING 

Written exam with open-ended questions / exercises: ability to describe and critically discuss the main theoretical models illustrated and discussed during the lessons and ability to calculate the main cost of capital parameters with the aim of identifying the value of the different components of the business value structure; 

Written test with closed-ended questions: ability to recognize the basic concepts and notions illustrated during the course, providing proof of the use of the financial logic tools necessary for choosing alternative options; 

Evaluation of the result of the group assignment: ability to use, with reference to a real case, the entire set of knowledge developed during the course, with reference to the analysis of the relevant cash flows, to the construction of the cost of debt capital, the application of the CAPM in order to identify the cost of equity capital and subsequently the weighted average cost of capital, and the application of the unlevered method and the dividend discount model in determining the equity value

ATTENDING

- A. Nova “Advanced topics in corporate finance”, EGEA, 2023 

- A. Dell’Acqua, “Corporate Debt Management” (indicated as DM in the syllabus), EGEA, 2018 

- Teaching material prepared by the lecturer and available on the e-learning platform (reference book extracts, slides, notes, Excel tutorials) 

NOT ATTENDING 

- A. Nova “Advanced topics in corporate finance”, EGEA, 2023 

- A. Dell’Acqua, “Corporate Debt Management” (indicated as DM in the syllabus), EGEA, 2018 

- Teaching material prepared by the lecturer and available on the e-learning platform (reference book extracts, slides, notes, Excel tutorials)