Teaching code

4S00495

Academic staff

Alex Sclip, Lorenzo Faccincani

Coordinator

Alex Sclip

Credits

9

Language

Italian

Scientific Disciplinary Sector (SSD)

SECS-P/09 - CORPORATE FINANCE

Period

Secondo semestre (lauree) dal Feb 26, 2024 al May 31, 2024.

Courses Single

Authorized

Lessons timetable Moodle Seminars 0

Learning objectives

The course aims to provide knowledge for corporate decisions and is mainly divided into two parts. In the first part, in the perspective of non-financial companies, the characteristics of the net present value in capital budgeting decisions, the choices of financial structure, short and medium-long term financing instruments, dividend policy, international trade financial instruments, instruments for hedging financial risks (exchange rate risk and interest rate risk) are presented. In the second part, the Course aims to provide a general overview of the elements characterizing the financial system, by analysing the structure and functions of the markets, the credit intermediation and securities brokerage services. At the end of the course the student is able to apply the knowledge to make business decisions relating to problems of corporate finance, investments and financing.

Prerequisites and basic notions

The course takes place in the second semester of the second year of the degree course in Economics and Business. For a fruitful understanding of the phenomena being studied, the student is required to have knowledge of the fundamentals of Business Economics, accounting and Business Performance.

Program

First part of the program – Financial intermediation (object of the mid-term test)
• Introduction to financial intermediation
• Elements of financial intermediation theory
• European Central Bank, monetary policy and interest rates
• Money markets
• Bond markets
• Stock markets
• Initial Public Offering (IPO), direct listing and Special Purpose Acquisition Companies (SPAC)
• Currency markets
• Derivatives markets
• Banks
• Insurance companies and pension funds
• Asset management companies and mutual funds
• Investment firms
The second part aims to provide a basic knowledge about investment and financing policies:
- Cash flow analysis: objectives, meaning and implementation;
- Financial and Operational risk;
- Investment valuation methods: payback period, discounted payback period, net present value, internal rate of return;
- The quantification of the relevant project cash flows and the related cash flow statement;
- The weighted average cost of capital (WACC); - Portfolio risk and return: the diversification effect;
- The Capital asset pricing model and the Security market line; - The dividend discount model;
- The estimate of the cost of debt;
- The theories of Modigliani Miller without and with taxes;
- Beta levered and unlevered;
- Alternative theories to Modigliani Miller.

Bibliography

Didactic methods

Theoretical lessons and exercises

Learning assessment procedures

There is a mid-term test in which the Student may decide to participate. It will focus on the first part of the program concerning financial intermediation. There are no differentiations between attending and non-attending Students.
The mid-term test consists of a written test with 3 questions (open theoretical questions and exercises). The duration of the test is two hours. The minimum mark for passing the mid-term test is 18/30. Compared to the final grade, the result achieved in the mid-term test will have a weight of 50%. The Student may decide, if she or he deems it appropriate, to refuse the grade of the mid-term test. The relative communication must be made to the email address lorenzo.faccincani@univr.it by 8.00 am on the day before the first appeal of the June-July 2024 session. In case of refusal of the grade of the mid-term test, the student must, of course, take the exam on the entire program.
On the elearning platform, the text of the mid-term test and the solutions of the related exercises will be made available immediately after the test has been held.
The second part of the exame - corporate finance - consists of a written text with theoric questions and exercises.
The complete exam includes 5 questions in total, of which 2 and a half refer to the first part and 2 and a half relating to the second part (time available: 2 hours).

Evaluation criteria

Written examination

Criteria for the composition of the final grade

From 0 to 30

Exam language

Italiano