Course 2010-2011 a.y.

Course Objectives

This course teaches the foundations and tools needed for corporate investment and financing decisions, in order to create value for shareholders. Therefore, the aim of the course is to focus the attention on: cash flows, budgeting, valuation; how to measure return and risk, the cost of capital and the financial structure. This course takes the students through the process step by step and topics are analyzed with the help of case studies.

Course Content Summary

• Reclassification of the balance sheet and the income statement, the cash flow statement, budgeting
• Investment valuation: capital budgeting criteria
• Return and values of stocks
• Risk, return and the cost of capital
• Portfolio theory and the capital asset pricing model
• Financial structure

Detailed Description of Assessment Methods

The exam will be written.

Textbooks

Class notes, slides and other information will be available in the class learning space. Students are strongly recommended to scan over the class notes and slides before class. Besides:

R. Brealy, S. Myers and F. Allen, Principles of Corporate Finance, McGraw Hill, 2007 9^th edition.