FINANCING HIGH GROWTH FIRMS

This course deals with the inner topics that corporations and managers must consider while using capital, along with the main solutions that allow to use it to create new value. A special focus will be given in case of companies with a superior intangible asset intensity, as the digital enterprises and the high potential ones. In this framework, financial management tools cannot not simply refer to funding practices but to the entire funding-to-investing cycle in order to increase the actual competition of the firm. This is why the main target of the course is to transmit the idea that the value generating process in mainly based on the true prospective of generating expected cash flows, provided a full assessment of the risk they embed. In fact, such cash flows must be sufficiently high to satisfy the threshold levels defined by the degree of the risk perceived in investors' expectations and their own risk aversion. For the digital enterprises, practices of investor-picking must be considered as well, since they divert from standard corporate practice. According to this approach the long-term competitiveness of the corporation can be also sustained by the adoption of financial policies focused on satisfying the expectations of all investors, avoiding short term approaches intended to privilege specific classes of investors in the access of the cash flows to the firm and so creating agency costs charged over the firm's economics.

By attending the course, you will chiefly acquire a return-to-risk framework to carry on corporate decisions, chiefly those related to managerial finance. Theoretical frameworks concerning the risk assessment inside the financial markets will be provided along with description and use of the key risk indicators, such as betas. Your distinguished competence you will achieve through these classes is the ownership a deeper practice in the case of non-asset-backed financing.
Practices and pitfalls in running a sound financial diagnose of the firm will be given, along with a practical view of corporate cash flows projections and expectations. Investments appraisal techniques such as net present value will be illustrated both at theoretical and applied level
You will learn how to configurate and estimate the corporate cost of capital by mixing up equity and debt capital and managing the agency costs which might arise from your decisions.

Digital Management
Students are strongly recommended to attend classes after completing "Planning and management control system" classes

The course is focused on the following five topics, that will cover a week of lessons each:
1. Cash flows expectations: their dynamics and their implied risks
2. Relating your expectations to the financial markets and the investors: tools, applications, risk premia and business planning
3. Capital budgeting techniques: wise investing to create value for all stakeholders
4. The capital structure puzzle and the cost(s) of capital
5. The case of growing companies: funding while managing the agency threats

Watson, Head, Mantovani, Rossi. Corporate Finance. Principles and practice in Europe, Pearsons, , Ed. 2016, English version (EPub only in Italy)

Students are required to demonstrate their knowledge both at theoretical and practical level. Therefore, their marking will be obtained by continuous cycle of workgroup assignments on a weekly basis, while a final assessment will be required to have a very personal marking. Assignments and assessment could be given using digital instruments as video recording and interactive presentation provided that a specific contribute of the single person will be mandatory. Active participation in classes will be considered as well.

The course consists of 6 hours per week, which amount to 30 hrs in total. For each of the five topics three classes will be held in order to learn: (i) the main theoretical backgrounds; (ii) the best practices and methodological pitfall; (iii) the actual application through mini-cases and practical examples. Some side activities will be organized and communicated during the course.

English

Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and students with specific learning impairments
Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support
services and accommodation available to students with disabilities. This includes students with
mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

written and oral