CORPORATE FINANCE

The objective of the course is twofold. On the one hand, it provides students with the methods an enterprise should follow in making investment decisions. On the other hand, it aims to teach how an enterprise should finance investments. By the end of the course, students should be able to understand and critically analyze key events in the financial management of an enterprise.

Accounting, Mathematics and Principles of Financial Mathematics.

Knowledge and understanding: The course will introduce the students to the theoretical tools necessary to understand corporate finance decisions. This course will develop distinctive conceptual frameworks and specialised tools for solving real world financial problems. Applying knowledge and understanding: The students will be able to use the standard models of corporate finance to interpret and analyse real problems Making judgements: We expect students to be able to understand and judge key investment and financing decisions. Communications Skills: This course will give the students the possibility to acquire and understand major concepts in order to communicate their ideas, proposals, analysis in the field of corporate finance. Learning skills: This course will contribute empower learners giving them the tools to understand and critically assess the key financial decisions that corporations need to make.

Net present value; valuing bonds and common stocks; real options; risk and return; best practice in capital budgeting; financing decisions and market efficiency; capital structure; principles of option theory.

Berk, J. and P. DeMarzo (2019), Corporate Finance, Global Edition (5th edition)

Lectures, Class exercises, Business Cases

The student will be evaluated as follows: Final exam: 100% on the final grade.

Subject proposal.