BUSINESS FINANCE
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Delivery method
- Teaching methods
- Contacts/Info
There are no explicit prerequisites. However, a good understanding of basic principles of Accounting and Financial Statements and Financial Mathematics is recommended.
The in-presence exam consists exclusively of a final written test, lasting about one hour, structured as follows:
• 4/5 open questions to verify theoretical knowledge and fundamental logics of Corporate Finance (20 points);
• exercises to test the application of investment project valuation tools and business analysis (7 points);
• multiple-choice questions to assess reasoning abilities (3 points).
The weight of each part may slightly vary depending on the test. The final evaluation is expressed in thirtieths. To pass the exam, it is necessary to achieve a grade of at least 18/30. A student can receive honors if they score 30/30 and perform exceptionally well in a written test.
There is no provision for or possibility of oral supplementation.
No intermediate tests are planned."
The course covers a selection of the major advanced topics of corporate finance, focusing on some of the “pillars” of Corporate Finance such us the investment policy and financing decisions.
We will examine the variables to estimate the value of firms.
Learning Outcomes
At the end of the course the student will be able to know and understand the main economic and financial variables used to estimate the value of a company.
Results of estimations should be analyzed by the student in order to make a judgment related to the acceptability or otherwise of an investment or financing decision.
Basics and advanced topics of capital budgeting
(capital budgeting’s criteria, the estimation of cash flows, sensitivity analysis, break-even point analysis, real options and decision trees). Extended NPV and the valuation of real options. The firm’s capital structure (the propositions of Modigliani-Miller, the weighted average cost of capital).
The course material required is as it follows:
• For all students: Brealey R.A., Myers S.C., Allen F. and Sandri S., “Principles of Corporate Finance” [it], McGraw-Hill, Milan, 2020, IX edition.
The mandatory chapters, for the purpose of the written exam, are: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 15, 16, 17, 18 ,19.
As supplementary reading chapters: 14, 27, 28.
Other materials (slides of the lectures, tutorials and study materials) will be made available online on the e-learning platform.
No other teaching materials (handouts, summaries, etc..) are authorized by the teacher.
The teaching will be delivered over a total of 40 hours of frontal teaching, of which approximately 10% will be in the form of exercises (within the total hours). There are no forms of supplementary teaching planned.
Office Hours
By appointment (in presence): Room #20, first floor, Department of Economics, Via Monte Generoso, 71 – Varese
By appointment (remotely) contacting the teacher by email to schedule a meeting via Microsoft Teams. Alternatively, students can be received at the end of each lesson.