Università degli studi dell'Insubria

PRINCIPLES OF CORPORATE FINANCE

A.A. di erogazione 2019/2020
Insegnamento opzionale

Laurea triennale in ECONOMIA E MANAGEMENT
 (A.A. 2017/2018)

Docenti

Anno di corso: 
3
Tipologia di insegnamento: 
A scelta dello studente
Settore disciplinare: 
FINANZA AZIENDALE (SECS-P/09)
Lingua: 
Inglese
Crediti: 
6
Ciclo: 
Primo Semestre
Ore di attivita' frontale: 
40
Dettaglio ore: 
Lezione (40 ore)

This course aims to provide fundamentals of corporate finance, on theories, policies and basic instruments related to fims’ investment decisions (among others make or buy decisions, capital budgeting, financial investments, ...) and financing policies.

Even if no explicit pre-knowledge is required, a good knowledge of the basic contents of Accounting and Financial Maths is recommended.

1) Introduction to Corporate finance (4 hours)
1.1 The role of corporate finance and capital markets
1.2 Consumption and investment
1.3 Shareholders and bondholders’ payoff

2) Present value and cash-flow (4 hours)
2.1 Intertemporal consumption choices
2.2 Elements of Financial Mathematics: interest rates, capitalization, present and future values

3) Capital budgeting and investment decisions: tools and selection criteria (14 hours)
3.1 The Net Present Value (NPV)
3.2 Alternative criteria for investment decisions
3.3 The estimate of cash-flows
3.4 Complex choices of capital budgeting

4) The valuation of financial investments (4 hours)
4.1 Bonds evaluation
4.2 Stocks evaluation

5) Risk and return and capital markets theory (12 hours)
5.1 The theory of capital markets
5.2 Measuring assets’ and portfolio’s return
5.3 Measuring assets’ and portfolio’s risk: variance and covariance
5.4 Efficient portfolios and capital market line
5.5 Capital markets equilibrium: the beta and the Capital Assets Pricing Model
5.6 The Securities Market Line

6) Some remarks about financing decision and firm’s financial structure (2 hours)

Teaching lessons and exercises. The total amount of hours delivered in class is equal to 40.

Written examination (1h 30 mins), divided as it follows:
• 3 theoretical questions (9 points overall), to test the knowledge of definitions and basic principles of Corporate Finance
• 3 exercises (15 points overall), in order to verify the application of financial instruments and the projects’ valuations
• 4 multiple-choice questions (6 points overall), to test reasoning ability.
For the purpose of passing the exam is necessary to achieve a score of at least 18 points over 30.
Student can report the highest score (30 cum laude) if the total score is equal to 30 points over 30.
Mid-term exams are not scheduled.

• Handbook: Hillier, Ross, Westerfield, Jaffe e Jordan [RHWJJ], “Corporate Finance”, McGraw-Hill Education, III European edition, 2016
• Slides, exercises and other materials will be available on e-learning platform Moodle.

OFFICE HOURS
• Room #20, first floor, Department of Economics, Via Monte Generoso, 71 – Varese
• During the whole academic year office hours is scheduled weekly. The calendar will be displayed on the teacher’s webpage (https://www.uninsubria.it/hpp/andrea.uselli).