“Corporate Finance” is one of the core courses within the degree program in Business Administration and Management. The main goal of the course is to provide students with a basic understanding of how to manage money in a company, being able to identify the solutions that allow its transformation into new market value. In this view, the financial function is not only in charge of the capital provision decisions but it also contributes to create the company competitive advantage, balancing capital provision with its efficient allocation.
In fact, the main educational goal of the course is to stress that the value of capital depends on the ability to generate operating cash flows in line with the risk-return expectations of all stakeholders. According to this perspective, the long-term equilibrium of the company can be achieved only if all stakeholders’ interests are satisfied, without discriminating or egoistically excluding some of them.
More specifically, the main contents of the course will focus on the computation and interpretation of the historical (cash flow statement) and future (budget) cash flows, on the valuation of stocks and bonds, on the capital budgeting decisions and on the estimation of the company cost of capital. All these topics will be presented on a theoretical and practical basis, allowing students to develop the quantitative skills necessary to cope with the main corporate financial decisions.