ECTS - University of Pisa
| Modules | Area | Type | Hours | Teacher(s) | |
| CORPORATE FINANCE | SECS-P/07 | LEZIONI | 42 |
|
The aim of the course is to examine the major decision-making areas of managerial finance and some selected topics in financial theory.
Starting from capital budgeting decisions, the course covers the main company valuation methodologies and examines the effect of corporate decisions on market value through the event study methodology.
The course reviews the theory and empirical evidence related to Mergers & Acquisitions and concludes examining the IPO decision and the effects of corporate governance characteristics of listed companies.
Therefore, the student who successfully completes the course will be able to demonstrate a solid knowledge of issues related to the main corporate financial decisions, i.e. the selection of investment projects, M&A activity and the raising of financial resources. In particular, by the end of the course the students should be able to:
1. Evaluate investment projects;
2. Understand the effect of risk on the cost of capital and the value of investments;
3. Know the main techniques for the valuation of the firm, through DCF and “market” methodologies;
4. Understand the characteristics of the M&A activity and its effect on value creation for bidder and target firms
5. Understand the characteristics of different sources of financing, with particular attention to equity
financing
6. Understand the main corporate governance issues
The course presents theoretical foundations on the various issues, mixed with exercises, case studies, and discussions of firms' actual behavior.
The assessment will consider different tasks:
1: Exam on capital budgeting (Weight: 20%)
2: Case Study (Group). Objective: work on market data, using Eikon / Datastream (Weight: 30%)
3: Final Exam (Individual). Objective: demonstrate learning & problem-solving skills (Weight: 60%)
The sudent will be able to
As stated before, the discussion of a case study will be considered for the final assessment of the student.
An active participation to the lessons is strongly encouraged.
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- Discounting and compunding cash flows
- Risk and return relationaship on financial markets
- Expected value and higher moments of random variables
Learning activities include:
All teaching material will be available on Teams.
Attendance is strongly advised.
Topics will include:
Additional topics could be included, according to students' interests, for example:
- Risk management decisions
- Innovation financing
- "Alternative" sources of financing: business angels, venture capital and corporate venture capital
Teaching Material:
Berk J. and De Marzo P. (2017) Corporate Finance, Global Edition (4th), Pearson
Additional readings and materials will be assigned during the course.
All teaching material will be uploaded on Moodle.
It is advisable to contact the teacher.
As previously stated in the "Assessment criteria of knowledge" section.
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