Insegnamento a.a. 2009-2010

Course Objectives

The course is focused on the topic of finance at an international level. The content is divided into two different parts: the first is dedicated to corporate finance issues and the second to investment banking issues. The aim is to give a broad picture about international finance management through both companies and financial institutions approaches. The main goal of the program is to offer both a clear framework and a set of operative tools to understand the relationship between firms and financial system. The first part covers the classical topics of Corporate Finance, i.e. capital budgeting, pay-offs between shareholders and bondholders, cost of capital, designing optimal capital structures, advanced models for risk valuation, integrated management of assets and liabilities, value creating strategies. The second part of the course is focused on the analysis of investment banking activity in the perspective of financial intermediaries dedicated to the selling of products and services for corporate customers. As a consequence of this second part is divided in to three sections: regulation and supervision, market and competition, management and financial instruments. A specific attention is given to corporate finance deals. The whole structure of the course is applied, case based and oriented to develop capabilities to held methodologies and practices used on the financial markets at an international level.

Course Content Summary

Part one (Corporate Finance)

• The fundamental of corporate finance through an international perspective
• The tools to apply corporate finance principles
• Capital structure issues: the concept of cost of debt and equity capital
• Legal and fiscal rules concerning debt and equity issuing
• A focus on different sources of debt: bonds, leasing, mortgages, syndicated loans, hybrid debt.
• How to compare different sources of debt
• Different models of company valuation (multiples, DCF, APV, real options): theory and practice

Part two (Investment Banking)

• Financial markets and relationships between firms and financial intermediaries: the business system of investment banking.
• Regulation and supervision in investment banking activity: a European and an American perspective through Basle II Capital Adequacy Framework
• Corporate lending activity: medium and long term financing and planning of debt.
• Pure Investment banking: underwriting and selling in domestic and international markets; the structure of syndicated loans.
• Corporate finance services: advisory & arranging in M&A; advisory & arranging in corporate restructuring deals.
• Advisory services for corporate governance: company structure, fiscal planning and property turnaround.
• Merchant banking services, private equity & venture capital.

Detailed Description of Assessment Methods

Attending students

Written exam, in this case there are two possibilities: two short mid term exams or one end exam.

Non attending students

The exam is based on a written trial.

Textbooks

The text books for all the students are:

• Investment Banking: Institutions, Politics, and Law, by Alan D. Morrison and William J. Wilhelm Jr., Oxford University Press (1 Feb 2007);
• Investment Valuation: Tools and Techniques for Determining the Value of Any Asset: University Edition, by Aswath Damodaran, John Wiley & Sons Inc;
• 2Rev Ed edition (28 Feb 2002). However, readings, slides and exercises will be available through on line page only for students joining the program.