The aim of the course is to examine the major decision-making areas of managerial finance and some selected topics in financial theory, with a particular focus on financial strategies of fast-growing firms.

Starting from capital budgeting decisions, capital structure and the estimation of the cost of capital, 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 also reviews the theory and the empirical evidence related to the growth process, both from the investment side (M&A decisions) and financial strategies (VC, Private Equity, Crowdfunding and IPOs).

The first part of the course will introduce basic financial valuation techniques. The key principles of capital budgeting will be presented, along with the concept and estimation of the cost of capital. A written exam will close this first part of the course.

The second part of the lectures will be dedicated to the analysis of firm evaluation methodologies (DCF valuation, relative valuation, valuation techniques applied to innovative firms) and the impact of an event on the firm market performance, applying the event study methodology. Students will have to work in groups on real-life data, using financial databases provided by Refinitiv, and will discuss a case study on a specific issue.

The third part of the course will focus on the growth process, with a particular attention to the problems of raising financial resources for innovative firms. The growth strategy through M&A decisions will be examined, as well as the different financial resources that could be used to sustain cooperate growth: Business Angels, Venture Capitalist, Crowdfunding and the access to equity markets. 

Up to 30% of the final score will be related to group assignments (case study discussion on firm evaluation, developed on market data available in the Eikon / Datastream database). The remaining part of the final score will be based on a mid-term written exam (weight = 20%, covering capital budgeting methodologies) and a written final exam (weight = 50%, including all remaining topics). A sufficient grade (18/30) is at minimum needed in the written exams to pass.

By the end of the course the students should be able to:

1. evaluate investment projects though NPV and other valuation techniques;
2. understand the concept of cost of capital and the process of its estimation;
3. know the main techniques for the valuation of the firm, though DCF, relative valuation and valuation techniques applied to innovative firms;
4. comprehend the opportunities and risks related to the growth through M&A operations
5. know the opportunities and the problems related to different sources of financing, in particular for fast-growing firms.

Students will also be able to:

• Access to marked data using the Eikon / Datastream databases
• Analyse data and discuss the case study developed 

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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