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Course 2016-2017 a.y.

30366 - FINANCE (MODULE II) - CORPORATE FINANCE


WBB
Department of Finance

Course taught in English


Go to class group/s: 24

WBB (6 credits - II sem. - OB  |  SECS-P/09)
Course Director:
HANNES WAGNER

Classes: 24 (II sem.)
Instructors:
Class 24: JULIEN SAUVAGNAT


Course Objectives
The course provides an introduction to the most important aspects of corporate finance. The objective is to acquire the essential skills necessary to actively deal with the corporate finance activities of an internationally operating firm. The course explores both investing and financing decisions, focusing on their role in the creation of shareholder value. The course covers four main parts:
  • The value of a firm - financial instruments, valuation concepts and decision rules.
  • Risk and return - theory, empirical evidence and applications to capital budgeting.
  • Financing decisions and market efficiency.
  • Payout policy, capital structure and valuation.

Course Content Summary
  • Finance and the financial manager.
  • Valuing bonds and common stocks.
  • NPV and investment decisions.
  • Risk, return and the opportunity cost of capital.
  • Capital budgeting and risk.
  • Efficient markets and behavioural finance.
  • Payout policy, debt policy and capital structure.
  • Financing and valuation.

Detailed Description of Assessment Methods
Course assessment consists of
  • Two written exams (partial and final exam, 70%);
  • Homework assignments (group case studies and individual assignments, 30%). The homework assignments have the main goal of helping to master the course material. They also offer opportunities to collect extra points for the total course grade. To make this as easy as possible, all homework assignments are handed out online and handed in online.
Course assessment is identical for attending and non-attending students.
Results of the partial exam and homework assignments expire after the first retake of the final exam. The specific dates are announced in class.

Textbooks
R.A. Brealey, S.C. Myers, F. ALLENPrinciples of Corporate Finance, McGraw Hill, 2014, 11th edition.

Prerequisites
This course is a quantitative course but does not focus on mathematical derivations or complicated statistical analysis. It does require some basics in mathematics and statistics.
Financial Mathematics, Accounting, and Financial Markets and Institutions are prerequisites for Bocconi students. For exchange students, having taken similar courses is advised. You should have reasonable knowledge of basics in financial mathematics such as the time value of money, annuities and perpetuities; basics in statistics such as probabilities, variances/covariances and ordinary least squares; basics in accounting such as being able to read information contained in balance sheets, income statements, cash flow statements.
Last change 25/05/2016 17:33