The main goal of this course is to provide an understanding of the foundations of Corporate Finance. The course introduces the key tools used to make investment and financing decisions and offers an overview of financial markets. By the end of the course, students will understand how companies and projects are evaluated and how securities are traded.

The course provides a solid foundation in the field of Finance. The intended learning outcomes are described in detail below. Knowledge and understanding: The course covers the theoretical and methodological foundations of Corporate Finance and offers practical tools for addressing real-world financial problems. Applying knowledge and understanding: Students will be able to assess the value of a project or a company while taking financing decisions into account; compute expected changes in stock prices resulting from these decisions; and understand the functioning of financial markets. Making judgments: Using the methodologies acquired during the course, students will develop the ability to collect and interpret financial data in order to make investment decisions and evaluate a company’s value-creation process. Communication skills: By the end of the course, students will be able to use the appropriate business and technical vocabulary of the Finance field. Through various course activities, students will develop the ability to communicate effectively in both written and oral form. These communication skills will focus on the critical analysis of financial management problems in different contexts, as well as on the ability to develop concrete solutions and present them both within teams and to the class. Learning skills: Students will acquire the knowledge and analytical tools necessary to address financial problems and to evaluate corporate governance. These skills will enable them to independently deepen their understanding of the subject and will provide a foundation for more advanced courses.

The role of Corporate Finance Time value of money Bond and stock valuation Investment decisions Risk and capital budgeting Capital structure Corporate governance Options Mergers and acquisitions

Brealey, R. A., Myers, S. C., F. Allen, and A. Edmans, Principles of Corporate Finance, 2025 release, McGraw-Hill Instructor’s presentations (PDF slides) will be available on the course website.

Each lecture will cover a different topic of the program course. Every Thursday (except for the first and last week), the teaching assistant will solve some practical exercises together with the students, made available to the students in advance. Students are invited to actively participate and contribute during classes and, if attending, will present their group assignments in the last week of the course.

For attending students, the grade will be determined as follows: 50% - Midterm exam 50% - Final exam For non-attending students: 100% - Final exam Additional details will be provided in class.

A thesis involves a well-defined research question and a formal econometric analysis. Additional details will be provided in class.