FINANCIAL MANAGEMENT

The course covers three main parts.
The first one concerns how to assess the risk and return trade-off in financial markets under the usual hypotheses of classic finance: rationality of investors and efficiency of financial markets.
The second one covers the issue of the financial structure of companies, starting from the traditional Modigliani and Miller framework until the more recent empirical findings.
The third one deals with the empirical issue of corporate evaluation. It will first describe the methodologies used to carry out a corporate evaluation.

Foundations of finance
Mean variance framework
CAPM
Value of the firm and the cost of capital
Corporate financial structure
Corporate evaluation

Copeland T.E., Weston J.F., Shastri K., 2004, Financial Theory and Corporate Policy, The Addison-Wesley Series in Finance, 4th Edition: chapters 3, 5, 6, 10, 11, 13, 15.

Further references will be provided during the course.

Written exam: 10 questions, each one scoring 3 points.
Empirical assignment: students will write an essay under the supervision of the professor.
The overall grade will be the weighted average of the written exam (30%) and of the empirical assignment (70%).

Upfront

English

Assessment
30% Written examination.
70% Based on presenting and writing an empirical assignment. The assignment will consist on carrying out a corporate valuation under the perspective of a sell side analyst.

written and oral