CORPORATE FINANCE COURSE a.a 2017-18
Prof. Maurizio Fanni mfanni33@gmail.com
Contents of the course
Stock Equilibrium
Basic concepts and practical implementation
· Funds and flows.
· Fund and flow of net working capital
· Fund and flow of cash
· Working capital management
· Cash management
· Cash management" tools: the dynamic balance of cash
· Circuit of liquidity and free cash flow • Free cash flow and theory of value
· Self financing and dividends policy
· Corporate governance
· Discussion of controversial cases
Theory of interest
Fisher contributes
Lending and investments.
Investment opportunities and market equilibrium
Operating risk, financial risk, insolvency risk
Modigliani and Miller theory
Basic concepts.
• The theory in the absence of taxation
• The theory in the presence of taxation.
• Analysis of ARP . The multiplier (M) of the value.
• Weighted average cost of capital
Trade off Theory
Capital budgeting
Valuation of companies
An overview of valuation methodology
Portfolio choices and efficient markets
· Basic concepts and practical implementation
· Construction of portfolios of financial assets
· Tobin models
· Risk diversification and the efficient frontier
· Capital Asset Pricing Model
· Sharpe models
· Beta determination and Beta analysis
· Modigliani & Miller and portfolio theory
· Levered and unlevered Beta
· Jensen, Sharpe, Treynor, Sortino
Financial market investments
Rating and pricing methodology
PROBLEMS WITH TOPICS WILL BE DISCUSSED DURING THE COURSE
OBJECTIVES OF THE COURSE
The course deals with the problems of Corporate Finance of the firm: explores the tools of financial management, capital budgeting, and portfolio choices on financial markets. It develops in the prospect of the fundamental analysis and the governance of various types of enterprises.
SOURCES
§ FANNI M. Elements of Financial Management, Irfai, 2017
§ FANNI M. Modigliani & Miller and Portfolio Choices, papers for students 2017
§ FANNI M. Strumenti di Cash Management e di Governance, Irfai, 2017
§ FANNI M. Analisi fondamentale ed efficienza valutativa, Irfai 2017
CONSULTATION TEXTS
FANNI M. Manuale di Finanza dell’impresa, Giuffrè, 2000
FANNI M. COSSAR . Il metodo contabile, Carocci, rist. 2006
T.E. COPELAND - F.J.WESTON, Financial Theory and Corporate Policy, Addison – Wesley Publishing Company, 1992
FRANKS JULIAN R., BROYLES JOHN E., CARLETON WILLARD T., Corporate Finance, Kent Publishing Company, 1995
Class schedule
Monday 15-17
Tuesday 11-13
Wednesday 9-11
Classroom 3 via Tigor
Exams
Three sessions with written and oral appeals.
Written tests also during the course on
1. Fund and flow statements
2. Modigliani & Miller Theory
3. CAPM
An oral exam at the end