88204 - Introduction To Finance (5 Cfu)

Academic Year 2021/2022

  • 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, Investments, and Institutions
  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. Time value applications (hand calculation and excel)
  • Pension plans
  • College saving
  • Loan and mortgage amortization
  • Asset valuation (stocks and bonds)
  • Project valuation with Net Present Value (NPV)

7. An introduction to financial econometrics

Readings/Bibliography

We will be mainly covering chapters from the following textbook:

Introduction to Finance: Markets, Investments, and Financial Management, 17th Edition (2019), by Ronald W. Melicher and Edgar A. Norton.

We can also refer to the following references for specific topics:

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.

SUPPLEMENTARY MATERIAL

LECTURE NOTES

Excel applications will be an important 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 

3- A dedicated tutor

Dott.ssa. Beatrice Vitale: beatrice.vitali8@unibo.it

Assessment methods

A written exam is expected at the end of the course, composed of multiple-choice questions and exercises.

Excel homework will also be assigned and considered

You need to obtain at least 18/30 to be able to register the final score together with the "Management" score.

• <18 fail
• 18-23: fair
• 24-27: good
• 28-30: very good
• 30 e lode: excellent

Note: only 4 exams are allowed within the same academic year. overpassing the year without passing (18/30 at least) the course requires following again the course.

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