04521 - Business Finance

Learning outcomes

The aim of the course is to provide a basic education in corporate finance. At the end of the course the student will be able to evalute both the profitability of an investment project or of a business and to take appropriate decisions on how to finance it. The capital markets and behavioural finance will be highlighted with a focus on the balance between financial resourses and investments. All students from foreign universities are kindly requested to introduce themselves to the teacher before taking the exam or attending the classes.

Course contents

Main financial regimes

Present value and cash flows

Evaluation of annuities

Valuation of bonds and stocks

Term structure

Interest rate risk and financial immunization

Investment selection criteria

Investment decisions

Risk – return relationship

The Capital Asset Pricing Model

Risk and cost of capital

Efficient markets

Forms of financing

Dividend policy

The financial structure

Readings/Bibliography

- Teaching material provided by the professor (theory and exercises)

- R. A. Brealey, S. C. Myers, F. Allen, S. Sandri, Principi di finanza aziendale, McGraw Hill Italia, ottava edizione, 2020.

Teaching methods

Slides and blackboard. Theory and exercises.

Assessment methods

Written exam made up by 8-10 exercises.

The tests are closed-book.

It will be possible to renounce the vote and repeat the exam in the official sessions established according to the school rules.

The grading of the mark expresses the following judgment:

- <18: insufficient

- 18-23: sufficient

- 24-27: good

- 28-30: very good

- 30L: excellent

Teaching tools

PC and blackboard

Office hours

See the website of Gian Luca Tassinari