04521 - Business Finance

Course Unit Page

Academic Year 2020/2021

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 and the profitability 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

Present Value and the Opportunity Cost of Capital
How to Calculate Present Values
The Value of Common Stocks
Why Net Present Value Leads to Better Investment Decisions
Making Investment Decisions with the Net Present Value Rule

Introduction to Risk, Return, and the Opportunity Cost of Capital
Risk and Return
Capital Budgeting and Risk

Practical Problems in Capital Budgeting

Where Positive Net Present Value Comes From
Financing Decisions and Market Efficiency

Corporate Financing and the Six Lessons of Market Efficiency
An Overview of Corporate Financing
How Corporations Issue Securities

Dividend Policy and Capital Structure

The Dividend Controversy
Does Debt Policy Matter?
How Much Should a Firm Borrow?
Financing and Valuation

Options

Understanding Options
Valuing Options

The futures markets
Warrants and Convertibles

Debt Financing

Valuing Debt
The Many Different Kinds of Debt
Cash Flow Management
Fundamental and Technical Analysis

Trading systems and quantitative finance

TEXT BOOK CORPORATE FINANCE BY Brealey Meyers

Readings/Bibliography

R. Brealey, S. Myers, F. Allen, Corporate Finance , McGraw Hill latest edition

Teaching methods

On line courses

Assessment methods

In the September October 2020 period the student attending the on line lectures can pass the exam through 10 tests lasting not more than 3 minutes on line one every week. Each assesment is composed by a 10 questions quiz.

Otherwise there will be the usual tests made up by 26 multiple choice questions and a DCF (discounted cash flow) excercise.. 

Teaching tools

All the lectures will be uploaded on the personal youtube channel of the teacher 

Links to further information

https://www.unibo.it/sitoweb/emilio.tomasini

Office hours

See the website of Emilio Tomasini