98663 - Corporate Finance and Financial Markets (8 CFU)

Learning outcomes

The aim of the course is to provide students with the tools necessary to analyze (i) the investment and financing decisions in all different phases of a firm life cycle and (ii) the characteristics, role, and functioning of financial systems to understand their developments in the short and long runs.

At the end of the course, the student will be able to: (i) evaluate real investments; (ii) evaluate the primary financing sources available to companies; (iii) understand the characteristics and functioning of the markets and the main financial instruments; (iv) understand the characteristics and functions of the leading financial intermediaries.

Course contents

Corporate finance (part 1)

1. Introduction to finance and to the role of financial managers.
2. Real investment evaluation techniques.
3. Dividend policy.
4. Capital structure policy.
5. IPOs and new stock issues. 

Financial markets (part 2)

1. Foundations of financial intermediation.
2. Financial instruments.
3. Financial markets.
4. Financial intermediaries.
   

Practical exercises will follow each theoretical topic.

Readings/Bibliography

Lecture notes. The notes will be available on the platform “virtuale.unibo.it” along with examples of past exams and a FAQ list. There are no recommended preparatory readings.

Recommended books:

• R. Brealey, S. Myers, F. Allen, S. Sandri, Principi di Finanza Aziendale, McGraw Hill Libri Italia, 2020. Chapters 1, 2, 6, 7, 8, 9, 15, 16, 17, 18 (ISBN: 8838695717 · 9788838695711).
• L. Nadotti, C. Porzio, D. Previati, Economia degli Intermediari Finanziari, McGraw Hill Libri Italia, 2017. Chapters 1, 2, 4, 5, 6, 7, 8 (ISBN: 978-88-386-1551-1).
• D.G. Luenberger, Finanza e investimenti, Maggioli Editore, 2011 (ISBN: 8838786365)

Teaching methods

The program will be presented in class. Theoretical and practical classes will be provided. Course attendance is not compulsory but recommended.

Assessment methods

Valuation is based on a written exam:

• The partial exam is based on 16 Multiple Choices (32 points). The partial exam lasts 40 minutes. It is possible to access the second partial exam with a minimum score of 14.
• The total exam comprises 32 Multiple Choice Questions: 16 Multiple Choice Questions for each module. The total exam lasts 80 minutes. Each module weighs 50% of the total score.
• A correct answer to a Multiple Choice Question gives 2 points. There is no penalty for wrong answers, and there is only one correct answer.
  

The exam aims to verify the achievement of the following objectives:

• Evaluating real investments.
• Evaluating the primary financing sources.
• Understanding the functioning of the markets and the main financial instruments.
• Understanding the role of the leading financial intermediaries.

Graduation grid of marks:

• Minimum grade 18; maximum grade 30L.
• 18-23: sufficient preparation and analytical skills on a limited number of topics covered in the course.
• 24-27: adequate preparation and analytical skills but with some limitations; good operational skills, even if not particularly articulated.
• 28-30: very good knowledge of a large number of topics covered in the course; good operational and critical skills.
• 30L: excellent and exhaustive knowledge of the topics covered in the course; critical analysis and connection skills.

Teaching tools

Projector and black board, spreadsheets, tablet.

Office hours

See the website of Pierpaolo Pattitoni