Financial Markets and Institutions. Finance for Development
A.Y. 2020/2021
Learning objectives
On successful completion of this course, students should be able to understand the core corporate finance decisions, which are essential for all businesses: 1) understand the tools that are used to value investment projects and companies (valuation); 2) understand the basic issues involved in how firms should raise funds for investments (financing). Furthermore, they should be able to understand how investment and financing decisions are related, evaluating the process which firms go through in choosing between strategic options and integrating their knowledge of the legal aspects with a comprehensive financial approach. A final focus on financial tools for development is provided.
Expected learning outcomes
- Knowledge and understanding: on successful completion of this course, students should be able to understand the core corporate finance decisions, which are essential for all businesses: 1) understand the tools that are used to value investment projects and companies (valuation); 2) understand the basic issues involved in how firms should raise funds for investments (financing).
- Applying knowledge and understanding: students should be able to understand how investment and financing decisions are related, evaluating the process which firms go through in choosing between strategic options, such as undertaking a merger or engaging in restructuring, and integrating their knowledge of the legal aspects with a comprehensive financial approach. A final focus on financial tools for development is provided.
- Making judgements: students learn the ability to identify and use data to formulate responses to well-defined financial problems, such as pricing a company asset or evaluating investment options.
- Communication: the course encourages students to communicate about their understanding, skills and activities encouraging guided class discussion and through case studies, and problem sets.
- Lifelong learning skills: on successful completion of this class, students can appreciate the basics of corporate finance and use them to undertake further class in finance and/or in their work experience.
- Applying knowledge and understanding: students should be able to understand how investment and financing decisions are related, evaluating the process which firms go through in choosing between strategic options, such as undertaking a merger or engaging in restructuring, and integrating their knowledge of the legal aspects with a comprehensive financial approach. A final focus on financial tools for development is provided.
- Making judgements: students learn the ability to identify and use data to formulate responses to well-defined financial problems, such as pricing a company asset or evaluating investment options.
- Communication: the course encourages students to communicate about their understanding, skills and activities encouraging guided class discussion and through case studies, and problem sets.
- Lifelong learning skills: on successful completion of this class, students can appreciate the basics of corporate finance and use them to undertake further class in finance and/or in their work experience.
Lesson period: First semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Lesson period
First semester
Lectures are scheduled on Microsoft Teams on the same slots as if taken in class. They will be uploaded on Ariel too.
The syllabus and reference material do not change.
The exam is taken on Exam.net and Zoom. All information is available on Ariel.
The syllabus and reference material do not change.
The exam is taken on Exam.net and Zoom. All information is available on Ariel.
Course syllabus
a) Valuation. Methods of Valuation: Net Present Value; Real Options; Cash Flow Analysis. Company and Asset Valuation. b) Financing. Debt: Senior and Mezzanine Debt; Private and Public Placements; Eurobond Market; Equity: Common Stocks; Preferred Shares; Option Rights; Initial Public Offerings. c) Valuation & Financing. Capital Structure and Investment Decisions; Mergers & Acquisitions; Leveraged Buy-Outs; Corporate Restructuring; Dividend Policy.
Prerequisites for admission
None
Teaching methods
a) Lectures; b) Research papers and financial press (Financial Times, Wall Street Journal, The Economist) available on Ariel for group works and class participation.
Teaching Resources
Brealey, R., S. Myers and F. Allen, 2016, Principles of Corporate Finance - Global Edition, ISBN: 978-1259253331, McGraw-Hill, (12 edition).
Assessment methods and Criteria
Closed-book written exam. The exam will include short essays covering readings and additional material and last one hour and a half. All grades will be based on both the approach taken and the correctness of the response. To obtain good marks, show your work in a way that enables the lecturer to follow your reasoning. Mark is in 30/30 and will be published on Ariel.
SECS-P/11 - FINANCIAL MARKETS AND INSTITUTIONS - University credits: 6
Lessons: 42 hours
Professor:
Arnaboldi Francesca