98663 - Corporate Finance and Financial Markets (8 CFU)

Learning outcomes

The aim of the course is to provide students with the tools necessary to analyze (i) the investment and financing decisions in all different phases of a firm’s life cycle and (ii) the characteristics, role, and functioning of financial systems to understand their developments in the short and long runs.

At the end of the course, the student will be able to: (i) Assess real investment opportunities; (ii) Evaluate Primary Financing Sources; (iii) Understand Financial Markets and Instruments; (iv) Understand Financial Intermediaries.

Course contents

Corporate Finance (Part 1)

1. Introduction to finance and the role of financial managers.
2. Real investment evaluation techniques.
3. Dividend policy.
4. Capital structure policy.
5. Initial Public Offerings (IPOs) and new stock issues.

Financial Markets (Part 2)

1. Foundations of financial intermediation.
2. Financial instruments.
3. Financial markets.
4. Financial intermediaries.

Practical exercises will follow each theoretical topic.

Readings/Bibliography

Lecture Notes

The lecture notes, along with examples of past exams and a FAQ list, will be available on the platform “virtuale.unibo.it [https://virtuale.unibo.it] ”. There are no recommended preparatory readings.

Recommended Book

• R. Brealey, S. Myers, F. Allen, S. Sandri, Principi di Finanza Aziendale, McGraw Hill Libri Italia, 2020. Chapters 1, 2, 6, 7, 8, 9, 15, 16, 17, 18 (ISBN: 8838695717 · 9788838695711).
• L. Nadotti, C. Porzio, D. Previati, Economia degli Intermediari Finanziari, McGraw Hill Libri Italia, 2017. Chapters 1, 2, 4, 5, 6, 7, 8 (ISBN: 978-88-386-1551-1).
• D.G. Luenberger, Finanza e investimenti, Maggioli Editore, 2011 (ISBN: 8838786365).

Teaching methods

The program will be presented in class through a combination of theoretical and practical sessions. While attendance is not mandatory, it is highly recommended to enhance understanding and engagement.

Assessment methods

Valuation is based on a written exam.

Partial Exam

• Content: 16 multiple-choice questions, worth a total of 32 points.
• Duration: 40 minutes.
• Requirement: A minimum score of 14 points is needed to qualify for the second partial exam.

Total Exam

• Content: 32 multiple-choice questions, with 16 questions from each module.
• Duration: 80 minutes.

Each correct answer awards 2 points. There is no penalty for incorrect answers, and each question has only one correct answer. Each module accounts for 50% of the total score.

The exam aims to verify the achievement of the following objectives

• Evaluating real investments.
• Evaluating primary financing sources.
• Understanding the functioning of markets and the main financial instruments.
• Understanding the role of leading financial intermediaries.

Grading Scale

• Minimum Grade: 18
• Maximum Grade: 30L
• 18-23: Sufficient preparation and analytical skills on a limited number of topics covered in the course.
• 24-27: Adequate preparation and analytical skills, with some limitations; good operational skills, though not particularly articulated.
• 28-30: Very good knowledge of a large number of topics covered in the course; strong operational and critical skills.
• 30L: Excellent and exhaustive knowledge of the topics covered in the course; exceptional critical analysis and ability to make connections.

Teaching tools

Projector and black board, spreadsheets, tablet.

Office hours

See the website of Pierpaolo Pattitoni