04521 - Business Finance

Learning outcomes

The aim of the course is to provide a basic education in corporate finance. At the end of the course the student will be able to evalute both the profitability of an investment project or of a business and to take appropriate decisions on how to finance it. The capital markets and behavioural finance will be highlighted with a focus on the balance between financial resourses and investments. All students from foreign universities are kindly requested to introduce themselves to the teacher before taking the exam or attending the classes.

Course contents

Main financial regimes

Present value and cash flows

Evaluation of annuities

Valuation of bonds and stocks

Term structure

Interest rate risk and financial immunization

Investment selection criteria

Investment decisions

Risk – return relationship

The Capital Asset Pricing Model

Risk and cost of capital

Efficient markets

Forms of financing

Dividend policy

The financial structure

 

Readings/Bibliography

- Teaching material provided by the professor (theory and exercises)

- R. A. Brealey, S. C. Myers, F. Allen, S. Sandri, Principi di finanza aziendale, McGraw Hill Italia, ottava edizione, 2020

Teaching methods

Slides and blackboard. Theory and exercises

Assessment methods

Written exam: 8 exercises

Exam duration: 1 hour 10 minutes

The exam is closed-book and requires the use of a pocket calculator.

Grading scale:

• <18: Insufficient

• 18-23: Sufficient

• 24-27: Good

• 28-30: Very good

• 30L: Excellent (with honors)

The grade can be rejected, and the exam may be retaken during the official scheduled exam sessions.

6 exams are scheduled for the Academic Year (A.A.).

Teaching tools

Pc, blackboard, slides

Office hours

See the website of Gian Luca Tassinari