INGLESE

The knowledge of the main principles of business economics and accounting is required.

The course will be offered through theoretical lectures which will be supported by practical applications.

At the end of the course students will be able to understand the main issues and dimensions of corporate finance, concerning the following topics: financial analysis and planning, investment criteria, risk and return, agency problems, market efficiency, financial instruments, and forms of debt and equity.

At the end of the course students will also be able to use the main tools of corporate financial analysis and decision making, such as financial ratios, cash flow statements, and net present value and other investment criteria, and they will be able to assess the financial and economic situation of a firm.

Practical applications, comparisons and discussions, which will take place during the course, will enable students to improve their autonomy, and communication, learning and critical skills.

1. Content.
Introduction to Corporate Finance. Financial analysis. Financial planning. Introduction to present value. Net present value and other investment criteria. Introduction to risk and return. Portfolio theory and the capital asset pricing model. Risk and the cost of capital. Project analysis. Agency problems. Efficient markets and behavioral finance. Types and characteristics of equity capital. Types and characteristics of debt capital.

2. Exercises.
There will be practical applications concerning the following main topics: financial analysis, cash flow analysis and capital budgeting.

There will be an oral examination.
For students with disabilities or Specific Learning Disability (SLD) who have contacted the University Disability/SLD Info Point to request support for the specific curricular exam, please note that the way the exam is taken can be adapted in accordance with the University Guidelines (https://www.univpm.it/Entra/Accoglienza_diversamente_abili).

During the oral examination, students will have to demonstrate that they have acquired a sound theoretical knowledge of the main issues and dimensions of corporate finance. They will also have to demonstrate that they have understood how to use the main instruments of corporate financial analysis and decision making, such as financial ratios, cash flow statements, and net present value and other investment criteria, and how to assess the financial and economic situation of a firm.

The mark will be expressed in thirtieths. A student will pass the examination if she/he obtains at least 18 and she/he can obtain a distinction (30 with distinction).

There will normally be 6 oral questions and the possible range of scores for each question will be not greater than 5. To be awarded a distinction, students will have to demonstrate a critical, analytical, complete and comprehensive understanding of the theoretical and practical course contents.

Brealey, R. A., Myers, S. C. and Allen, F., Principles of Corporate Finance, Thirteenth Edition, McGraw-Hill Education, New York, 2020. Chapters: 1, 2, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 24, 25 (only Paragraphs 25-1 and 25-2), 28 and 29.
Other teaching materials, which are necessary for the examination for every student, will be provided starting at the beginning of the lectures on the e-learning page of the course. Please log in (https://learn.univpm.it) and select «CORPORATE FINANCE A.A. 2022/2023». During the lectures, attending students are recommended to check this page frequently.
In the same page, the slides of the course will also be available. However, as specified on the slides of the course (page 4), the slides are not part of the exam material and are not sufficent to prepare for the examination.