The objective of this course is to develop a detailed understanding of the tools used by market professionals and corporate managers to estimate the value of companies and stocks. The central theme of the course will be the pricing of equity securities using discounted cash flow and relative valuation procedures. Students are asked to apply what they've learned to the valuation of a specific company, with the goal of becoming an expert on that field.
Damodaran A, Investment Valuation (3rd Edition).
It has almost all of thE material of the class (barring the more recent updates) and has problems at the end of every chapter. It follows the standard script of valuation, looking at different valuation models with twists. http://www.wiley.com/WileyCDA/WileyTitle/productCd-1118130731.html
After completing this course, students should be able to:
a. Identify and interpret the key value drivers for a firm or industry.
b. Develop quantitative models for firm and equity valuation based on DCF and multiples.
c. Identify and interpret accounting and non-accounting information necessary for valuation.
d. Critically analyze firm and equity valuation models and assumptions developed by others.
e. Present valuation analyses and assumptions in a professional manner
The final part of the course (3 CFU) will be offered in the form of seminaries dedicated to the presentation of several case studies of mergers and acquisitions.
1) ESSENTIAL OF CORPORATE FINANCE (Finance 101 BA level)
2) CORPORATE FINANCE (Finance 201 -MS 1 year)
The course includes lectures (28 hours), discussion of cases (24 hours) presented by the students and seminars (20 hours) with guest speakers.
Rules of Engagement
Rules of group work:
- Pick your own groups.
- All group work will be self policed, except in extreme circumstances.
- There will be one grade per group.
Rules on individual work:
- All exams and assignment except the group work are strictly individual work.
For further rules of engagements, grading policies and honor code please refers to the UNIFI Website.
Class attendance is essential to your success in this course. In class interaction and examples enrich the hands-out and the book materials and it allows you to have a better understanding of the discipline. The signature on the periodically circulated attendance roster will determine attendance.
Type of Assessment
The grading is based on the class participation (attendance, class interaction), case studies discussions and final exam. The final exam and the other assignments are intended to verify: 1) the knowledges of concepts, models and practical tools analyzed during the course; 2) the skills acquired by the student in term of: ability to apply the acquired knowledges, ability to identify proper conclusions, ability to communicate and to use a proper language, ability of understanding and learning.
The final grade will be given acconding to the following weighs:
Case study 1 - 20%
Fiance Simulation/case study 2 - 20%
Final exam 60%