88204 - Introduction To Finance (5 Cfu)

Academic Year 2020/2021

  • Teaching Mode: Traditional lectures
  • Campus: Forli
  • Corso: First cycle degree programme (L) in Economics and business (cod. 9202)

Learning outcomes

The aim of this course is to provide students with a set of analytical and methodological tools and techniques to value the most spread financial assets (bonds and stocks) and to choose which project to pursue among several different investment alternatives. At the end of the course students are be able to: (a) use the main criteria for investment choices under certainty; (b) utilize annuities and depreciation plans tools; (c) formulate and solve basic mathematic problems characterizing the banking and corporate contexts and the financial markets.

Course contents

The course will cover the following topics:

  1. A general introduction to Finance
  2. Simple interest rate & some practical implications
  3. Compound interest-concepts & calculations
  4. Practical implications of both compound & simple interest
  5. Annuities-concepts & basic calculations
  6. Some special annuity situations
  7. Investment choices criteria: NPV, IRR, PBP 
  8. Bonds & Stocks 
  9. An introduction to differential calculus
  10. An introduction to financial econometrics

Readings/Bibliography

The Mathematics of Money: Math for Business and Personal Finance Decisions. for Timothy J. Biehler, 2008 or 2016 editions.

PreMBA Analytical Primer: Essential Quantitative Concepts for Business Math. for Regina Treviño. Palgrave Macmillan 2008.

Mastering financial mathematics in Microsoft Excel : a practical guide for business calculations / Alastair L. Day. - 3. ed. - London : Financial times, 2015.

Financial mathematics. for Jothi, A. Lenin. First edition (2009).

SUPPLEMENTARY MATERIAL 

  • Introduction to Finance: Markets, Investments, and Financial Management, 14th Edition, by Ronald W. Melicher and Edgar A. Norton.
  • LECTURE NOTES

Excel applications will be an integral part of this course to familiarize students with practical applications in financial modelling.

Teaching methods

1- Classes by the professor explaining the contents of the course.

2- Excel lab to practice financial modeling 

Assessment methods

A written exam is expected at the end of the course.

Excel homework will also be assigned and considered

Teaching tools

A dedicated MS-Teams class will be created to facilitate the communications and for receiving students.

online/in presence lessons

Office hours

See the website of Murad Harasheh