CORPORATE FINANCE - Number of credits: 5
Carlo Cattaneo University - LIUC - Fall 2010
PROGRAMME
OFFICE HOURS: THURSDAY AT 15.00 TO 16.00
CLASS: WEDNESDAY 10.00 – 13.00
CLASS: THURSDAY 10.00 – 13.00
CLASS
OFFICE LOCATION: 8TH FLOOR OFFICE BUILDING
TOPIC
REQUIRED READING
Financial Statement Analysis
sept 22 The foundations of corporate finance: role and Brealey – Myers – Allen, Corporate finance, McGraw
objectives. Introduction to Financial Statement
Hill, 8th edition. Chapter 1.1, 1.2
sept 23 Asset conversion
management
cycle
and
working
capital Brealey – Myers – Allen, Corporate finance, McGraw
Hill, 8th edition. Chapter 30
sept 29 Cash flow calculation and interpretation
sept 30 Cash flow calculation and interpretation
The financing decision
Brealey – Myers – Allen, Corporate finance, McGraw
Hill, 8th edition. Chapter 29
oct 6
Risk and return relationship. Enterprise risk and Brealey – Myers – Allen, Corporate finance, McGraw
Financial risk. Portfolio theory and Capital Asset Hill, 8th edition. Chapter 7 & 8
Pricing Model
oct 13
The cost of capital: cost of debt and cost of equity, Brealey – Myers – Allen, Corporate finance, McGraw
WACC. The optimal capital structure
Hill, 8th edition. Chapter 19
oct 20
The optimal capital structure – cont’d. The use of
leverage: leveraged buyouts
Mid-term Written Exam
The investment decision
The time value of money. Actualization and
capitalization
Brealey – Myers – Allen, Corporate finance, McGraw
Hill, 8th edition. Chapter 17 & 18, 33.1
nov 10
Capital budgeting techniques: NPV, IRR
Brealey – Myers – Allen, Corporate finance, McGraw
Hill, 8th edition. Chapter 5
nov 17
Basics of company’s valuation
The Merger and Acquisition market: an overview.
Introduction to company’s value and valuation Brealey – Myers - Allen, Corporate finance, McGraw
techniques
Hill, 8th edition. Chapter 32
oct 27
nov 3
nov 24
dec 1
Brealey – Myers – Allen, Corporate finance, McGraw
Hill, 8th edition. Chapter 1.3 & Ch. 3
Discounted Cash Flow Analysis and Comparable Brealey – Myers - Allen, Corporate finance, McGraw
Analysis. Course overview. Conclusion
Hill, 8th edition. Chapter 19
Final Written Exam
EXAMINATION: Only students attending the course can take the written exam. All others must take the oral exam.
READING LIST: Course overheads will be available on Internet. The suggested textbook is available at the LIUC
library.