Corporate finance (2017/2018)

Learning outcomes

In the first part the course aims to provide a general overview of the elements making up the financial system, analyzing the structure and characteristics of markets, the business of credit intermediation and brokerage intermediation. In the second part, in the perspective of non financial firms, are analyzed the characteristics of the net present value in the capital budgeting decisions, the choices of financial structure, the financing instruments in the short and medium-long term, the dividend policy, the payment instruments in international trade and the operations of hedging of financial risks (currency risk, interest rate risk and commodity risk); moreover the topics of project finance and patent box are examined during the course.

At the end of the course the Student has to demonstrate to understand the peculiarities of the main components of the financial system; moreover he must be able to analyze, interpret and evaluate in a critical and autonomous way the firm’s decisions that have financial implications.

First part

- Introduction to financial intermediation.
- European Central Bank, monetary policy and interest rates.
- Money markets.
- Bond markets.
- Stock markets.
- The banks.
- The asset management companies and the mutual funds.
- The brokerage securities companies and the investment banks.

Second part

- The principles of corporate finance.
- The determination of the relevant cash flows and the cost of capital in the net present value.
- The decisions of financial structure. The benefits and the costs of borrowing.
- The technical forms of medium and long-term financing.
- The technical forms of short-term financing.
- The dividend policy.
- Payment instruments in international trade.
- Introduction to Corporate Financial Risk Management.
- The project finance.
- The patent box.

The teaching methods consist of lectures and examples designed to facilitate the understanding and interpretation of theoretical concepts.

Reference material
Volume Create for the course “Finanza aziendale” published by McGraw Hill.
Students must also prepare the material loaded on the elearning page of the course.

The exam is written and is directed to verify the knowledge of the topics in the program. It consists of 3 questions (theoretical open questions and exercises). The duration of the test is variable from a minimum of one hour and a half to a maximum of two hours.

There will be a mid-term exam at which the Student may elect to participate. The midterm will focus on the first part of the program:
- introduction to financial intermediation;
- European Central Bank, monetary policy and interest rates;
- the money markets;
- the bond markets;
- the stock markets;
- the banks;
- the asset management companies and the mutual funds;
- the brokerage securities companies and the investment banks.
The mid-term exam consists of a written with 3 questions (theoretical open questions and exercises). The duration of the test is variable from a minimum of one hour and a half to a maximum of two hours. To pass the mid-term test the minimum vote is 18/30.

Those who pass the mid-term exam will have to bear, in one of the appeals of the session of January-February 2018, a test which will focus on the second part of the course:
- the principles of corporate finance;
- the determination of the relevant cash flows and the cost of capital in the net present value;
- the decisions of financial structure. The benefits and the costs of borrowing;
- the technical forms of medium and long-term financing;
- the technical forms of short-term financing;
- the dividend policy;
- payment instruments in international trade;
- introduction to Corporate Financial Risk Management;
- the project finance;
- the patent box.
Also the test on the second part of the program consists of a written with 3 questions (theoretical open questions and exercises) and has a duration variable from a minimum of one hour and a half to a maximum of two hours.

Compared to the final vote, the result achieved in the mid-term exam will have a weight of 1/3 while the result of the second test will have a weight of 2/3. The final vote will be the weighted average of the vote of the mid-term exam and that of the second test; this average will rounded upward if the decimal fraction is greater than 0.50, otherwise by defect. In order to pass the exam, the vote obtained in the test on the second part of the program must be at least 18/30.

The Student may refuse the vote of the mid-term exam. The notification must be made by email at lorenzo.faccincani@univr.it prior of the 6 pm of the day before the first appeal of the session of January-February 2018. In case of rejection of the vote of the mid-term test the Student must, of course, take the exam on the whole program.
The Student can not only refuse the vote obtained in the test on the second part of the program; this means that if, after passing the second test, the Student is not satisfied of the vote, he will have to refuse the result of the weighted average of the two tests, losing then automatically the vote of the mid-term exam. The refusal of the vote must be notified at the email address lorenzo.faccincani@univr.it prior to the moment of the registration of the final vote.
The Student loses the vote of the mid-term exam if he does not sustain the second test in one of the appeals of the session of January-February 2018.

On e-learning platform, all the exam topics will be available immediately after the exam.

Finally, the exams are the same for attending and non-attending students.

STUDENT MODULE EVALUATION - 2017/2018