OBJECTIVES OF THE COURSE
Knowledge and understanding: Students acquire depth and systematic understanding of knowledge in area of corporate finance and can work with theoretical background at the field of financial management and research-based knowledge at the forefront of their academic discipline. Disciplinary methodologies: Students acquire sufficient insight in to corporate finance and understanding of fundamentals financial management techniques that are applicable to their own work area.
Applying knowledge and understanding:
- Application and use of capital market indicators for financial decision making
- Analysis of capital markets and the pricing of risks
- Analysis of leverage costs and financing of debt for companies
Making judgements: Ability to autonomously select relevant information useful for the process of planning, controlling and decision making in the short, medium and long term.
Communication skills: Prepare and discuss reports for managers about planning, controlling and decision making in a business contest, using an appropriate and specific vocabulary.
Learning skills: Continuously increase and update the competences, knowledge and methods acquired for managerial decision making
COURSE CONTENTS SUMMARY
Course is oriented at the field of corporate finance and financial management. Fundamental concepts that will be presented to the students are as follows: concepts of corporate finance, corporate finance principles, corporate financing policy and models, instruments, analysis and planning, key financial decisions, financing and financial resources, financing current assests, investment financing decisions capital budgeting, stock and firm valuation, risk and return, strategic and tactical corporate financial decisions.
PART I. VALUING PROJECTS AND FIRMS
1. Fundamentals of Capital Budgeting
2. Valuing Stocks and firms
PART II. LONG-TERM FINANCING
3. Raising Equity Capital
4. Debt Financing
PART III. SHORT-TERM FINANCING
6. Working Capital Management
7. Short-Term Financial Planning
Lectures’ notes as well as the supporting materials (exercises and related solutions, Excel spreadsheets) are available to students through the “Elly” educational platform maintained by the University of Parma. Access is granted to students subject to prior registration
In addition to the shared material, students can individually deepen their knowledge on specific topics discussed in the following textbooks:
• Berk, De Marzo, Corporate Finance, 3rd Edition, Perason
• Damodaran, Aswath, Corporate finance: Theory and practice, Wiley
• Brigham, Ehrhardt: Financial management, Thomson Ed.
Brealey, R.A., Myers, S., Marcus, A.; Fundamentals of Corporate Finance. McGraw-Hill
ASSESSMENT METHODS AND CRITERIA
The assessment is based on an individual written test for both attending and non-attending students. Grades are entirely based on a final written exam (100%). The final written test, lasting approximately 2 hours, consists of both theory questions and practical exercises. The theory questions may be multiple choice, “true or false” and open question. The exercises have a structure that is similar to exercises carried out in classroom.
Theory questions and practical exercises are weighted on a 50/50 basis.
The overall final grade is computed as the weighted average of the individual evaluations, with final ceiling to the next unit; the test is passed if the student reaches a score of at least 18 points. “30 cum laude” is given to students who achieve the highest score on each item and use precise vocabulary.
The lecture will be a blending of the instructor presenting relevant material and a learning by doing of the students (case studies and exercises) in order to stimulate their critical thinking.
During classroom exercises students are allowed to bring their own computers and tablets. Participation in lectures is not compulsory. Lecture slides in “pdf” format will be made available via web to unattending students.