There are no prerequisites, but it is helpful to command the main topics covered in the course Finance 1
The course balances learning of concepts, development of analytical skills, and practice in business valuation. The course has two primary objectives: First, the course seeks to deepen students? understanding of corporate finance by applying the intellectual frameworks used to analyze activities and institutions in the equity market. Thus, one goal is to review and apply the key concepts and tools of corporate finance. Second, the course seeks to familiarize students with application of financial theory to valuation, with opportunities to apply learning to live projects. A crucial objective of the course is therefore to build an appreciation of the valuation process.
By attending this course, participants will be able to perform a business valuation and to estimate the cost of capital and th equity value of a firm.
This course contributes to the aim of the master degree with regard to the understanding of the topics of economics and management.
Students are expected to acquire quantitative skills, to be able to perform a business valuation, to forecast future performance, as well as to cllect real-world business and financial data.
Valuation issues are often an issue of intense negotiations and contentious disputes. The goal is to make students acquainted with the valuation techniques. Students will be engaged in a real valuation.
Valuation methodologies include Discounted Cash Flows peer comparables.
As for the theoretical concepts, the course will cover three main fields, namely business valuation, corporate governance and capital raising.
Valuation: measuring and managing the value of companies, by T. Koller, M. Goedhart, D. Wessels, T. Copeland, McKinsey and Co.
The course is structured with lectures and real-world cases.
Consultants and financial analysts will present and discuss in class some cases.
Students are expected to present a structured analysis of a topic during one of the lectures. The presentation is scheduled for approximately 30 minutes. The slides prepared for the presentation before class will be considered part of the formal course assessment. Further details, and general discussion, of the examination will be provided in the initial lecture. Students will be engaged in a real valuation, as if they were ?real-world? financial analysts.
Course content and handouts will be available online for each topic on a weekly basis.
The assessment consists in (1) a in-class presentation on a single topic (10 points), (2) in a report to be submitted by the end of the course (10 points), and (3) a multiple-choice test (10 points). The final grade is the sum of the points in the three assessments. As for the in-class presentation (1), students are expected to present a structured analysis of a topic during one of the lectures. The presentation is scheduled for approximately 20 minutes. The slides prepared for the presentation before class will be considered part of the formal course assessment. Further details, and general discussion, of the examination will be provided in the initial lecture. As for the report (2), students will be engaged in a real valuation, as if they were real-world financial analysts.
Alternatively, students can develop and submit a term paper on a topic defined with the convenor of the course. The term paper (and supplementary material) should be submitted to the course convenor. The final grade will consider both the theoretical development of the paper (15 points) and the practical/empirical aspects (15 points). The project is assigned with the aim to have the same level of committment and a similar level of complexity as the exam for attending students.
Further details are available in the first set of slides available on the webpage of the course ("Introductory slides").