Course Topics
- Net Present Value - Capital budgeting techniques and investment valuation - Investment Portfolio Theory - Capital Asset Pricing Model - Capital structure and cost of capital - Valuation of financial instruments and investments: from discounted cash flow analysis to valuation by multiples - Crowdfunding, blockchain, decentralised finance and other innovations for corporate financing

Teaching format
- Lectures - Exercises in Excel - Interactive review of the material covered by means of quizzes - Competition on simulating the construction of an investment portfolio

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 Knowledge and understanding ILO 1.1 Knowledge of the method of analysis for estimating present values and discount factors to estimate the cost of capital and valuation of bonds and shares ILO 1.2 Knowledge of medium and long-term financial forecasting methodologies and sensitivity analysis with simulation under uncertainty to manage risks in corporate and international finance ILO1.3 knowledge and understanding of the international financial environment, multinational risk defence techniques and competitive strategies adopted by global banks ILO 2 Ability to apply knowledge and understanding ILO 2.1 knowing how to value fixed-income and equity financial instruments of companies listed on stock markets through the use of spreadsheet programmes ILO 2.2 be able to use techniques for evaluating the performance of financial investments and understand the price formation mechanisms of risky financial assets and spot and forward interest rates ILO 2.3 know how to analyse economic datasets using spreadsheets or other suitable software ILO 3 Making judgements ILO3.1 choose the most appropriate quantitative and qualitative methods of analysis ILO3.2 use logical reasoning to combine information and analytical methods, also using modern software packages, to arrive at a solution ILO 4 Learning skills ILO 4.1 analyse, critically process and integrate data, information and future experience, also using advanced software

Additional educational objectives and learning outcomes
Knowledge and comprehension skills: - Knowledge of the tools needed to calculate present values, choose discount factors, estimate the cost of capital and evaluate financial instruments such as bonds, shares or investment projects. Ability to apply knowledge and understanding: - Ability to value fixed income financial instruments and shares of listed companies using spreadsheet software. Autonomy of judgement: - Choose the best investment among alternatives - Be able to estimate the effect of uncertainty on investment choice Communication skills: - not expected Learning skills: - To be able to understand and find a solution to a particular financial problem in a company.

Assessment
Written tests and project work: written examination with theoretical review questions and numerical exercises

Evaluation criteria
Final grade from examination assessment (100 %) ILOs assessed 1 to 4

Required readings

Selected chapters from the CFA Programme 2020 Curriculum, Level I and II, Volumes 1-6.

Supplementary readings

R. Brealey-S. Myers-F. Allen, Principles of Corporate Finance, 12th edition, McGraw-Hill, 2017

Further information
no