ECTS - University of Pisa
| Modules | Area | Type | Hours | Teacher(s) | |
| CORPORATE FINANCE | SECS-P/07 | LEZIONI | 42 |
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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 investement projects, M&A activity and the raising of financial resouces. 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 valure creation for bidder and taget 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 execrices, case studies and discussions of firms' actual behavior.
The assessment will consider different tasks:
1: Exam on capital budgeting (Weight: 10%)
2: Case Study (Group). Objective: work on market data (Weight: 20%)
3: Discussion of a paper (Individual). Objective: develop communication skills (Weight: 10%)
4: 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 and of a papaer 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
- Project evaluation
- Expected value and higher moments of random variables
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Learning activities include:
All teaching material will be available on Moodle. Howeverm, 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 coprorate venture capital
Teaching Material:
Additional readings and materials will be assigned during the course.
All theaching material will be uploaded on Moodle.
It is advisable to contact the teacher.
As prevously stated in the "Assessment criteria of knowledge" section.
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