The course has two main objectives. On one side to illustrate the topic of firm valuation. On the other to give an idea of financial instruments negotiated in financial markets, grouped in asset classes. At the end of the course, students will be able to operate the valuation of a firm using the DCF and market multiples. At the same time, students should be able, at the end of the course, to understand the main features of the most important asset classes.
Course Prerequisites
Students should have basic knowledge of accounting and corporate finance. In any case, recap of topics necessary for the course is made in the beginning sessions.
Teaching Methods
Lectures will be supported by exercises through which it will be possible to verify, on a regular basis, the learning process. Relevant guests coming from the professional world will participate in the course teaching for a number of sessions.
Assessment Methods
The exam is written. It consists of a number of questions between 6 and 8. The most of them are exercises and problems that students must solve on the basis of concepts learnt during the course. The aim of the exam is to test the ability to apply knowledge to practical problems.
Texts
Teaching notes are made available for students on a regular basis, including exercises. A reading list will be provided at the beginning of the course
Contents
Portfolio theory and CAPM. Cost of equity, cost of debt and weighted average cost of capital. CAPM parameters estimation. The DCF approach to firm valuation. Business Plan analysis Asset side and equity side approach The dividend discount model Cost of capital for companies operating internationally (Forex market, and country risk premium, debt side and equity side) Market multiples and their use in firm valuation. Comparison of Multiples and DCF valuations Information asymmetries and capital structure decisions (NOT FOR THE STUDENTS OF "FINANCE" 6 credits) Introduction to bonds investment (NOT FOR THE STUDENTS OF "FINANCE" 6 credits ) EVA and residual income model (NOT FOR THE STUDENTS OF "FINANCE" 6 credits)
Course Language
English
More information
Exam grade average: 26.2 . Students enrolled in the Inclusive Learning Modalities programme (“Modalità didattiche inclusive) are requested to contact the Professor and the Degree Course Coordinator in order to assess specific needs and define targeted support actions.
