The course will present and discuss advanced corporate finance topics. It is divided in two parts (a theoretical part and an applied part). The theoretical part will build on the Modigliani-Miller result and its failures to develop an understanding of how agency problems shape the financing decisions of firms. The applied part will deal with advanced capital budgeting techniques, capital structure design, dividend policy and firm valuation and corporate governance. The aim of the course is to combine standard academic teaching with case studies in order to provide students with a framework to analyze complex investment and financing decisions and understand how financial theory can be used to address practical issues.

Knowledge and understanding: The course will offer key theoretical tools to understand corporate finance decisions. This course provides advanced knowledge and analytical resources that will enable students to understand which financiing choices are optimal for the firm, which frictions make corporate finance decisions complex and how to address them. Applying knowledge and understanding: The students will be able to: • apply valuation models to make optimal financing decisions, both in terms of which investments to make and how to finance them; Making judgements: We expect students to be able to understand the challenges faced by corporations and be able to advice them on what are the policies which increase its value. Communications Skills: This course will give the students the possibility to acquire and understand major concepts in order to communicate their ideas, proposals, analysis and critical reasoning in the field of corporate finance. Learning skills: This course will empower learners giving them the tools to understand and critically assess the most important financial decisions that corporations make.

The course will cover the following topics: Modigliani-Miller, insiders’ agency problems: adverse selection and moral hazard, capital budgeting techniques, capital structure design, dividend policy, firm valuation and corporate governance

Berk, J. and P. DeMarzo (2017), Corporate Finance. Tirole J. (2006), The theory of corporate finance. Cases and additional slides will be distributed during the course.

The course will combine standard academic teaching with lectures oriented towards practical issues and case studies. During the course problems sets will be distributed as individual homework. Solutions to the problem sets will be discussed in class. The problem sets will not be graded.

The written final test consists of a mix of open-ended questions, multiple choice questions and exercises, with which the student have to demonstrate knowledge of the theoretical notions of teaching, knowing how to apply them in practical cases demonstrating that he has achieved the method of study and the learning ability necessary to continue the study of the subject autonomously. The failure to achieve at least the score of 18/30 will result in failure to pass the exam. Correct answers to all multiple-choice questions, an excellent level of preparation in all open questions and the correct execution of all the exercises will result in a score of 30/30 cum laude. Class participation (including submission of solutions of case studies and problem sets, and their presentation to the class) will be evaluated and will be part of the final grade. The student can obtain up to 3 points for the final grade.notions of teaching, knowing how to apply them in practical cases demonstrating that he has achieved the method of study and the learning ability necessary to continue the study of the subject autonomously. The failure to achieve at least the score of 18/30 will result in failure to pass the exam. Correct answers to all multiple-choice questions, an excellent level of preparation in all open questions and the correct execution of all the exercises will result in a score of 30/30 cum laude.

Personal judgment and full marks for the exam session.