The main objective of this course is to learn how to systematically use financial information to be an effective manager. Upon successful completion of the course students will be able to: (1) Value securities; (2) make investment and capital budgeting decisions; and (3) understand risk, return, and cost of capital.
List of topics
1.1 Investment and Financing Decisions
1.2 What is a Corporation?
1.3 Who Is the Financial Manager?
1.4 Goals of the Corporation
1.5 Agency Problems, Executive Compensation, and Corporate Governance
1.6 The Ethics of Maximizing Value
1.7 A Preview of Coming Attractions
5.1 Future Values and Compound Interest
5.2 Present Values
5.3 Multiple Cash Flows
5.4 Reducing the Chore of the Calculations (1)
5.5 Level Cash Flows: Perpetuities and Annuities
5.6 Reducing the Chore of the Calculations (2)
6.1 The Bond Market
6.2 Interest Rates and Bond Prices
6.3 Yield to Maturity
6.4 Bond Rates of Returns
6.5 The Yield Curve
6.6 Corporate Bonds and the Risk of Default
7.1 Stocks and the Stock Market
7.2 Market Values, Book Values, and Liquidation Values
7.3 Valuing Common Stocks
7.4 Simplifying the Dividend Discount Model
7.5 Growth and Growth Opportunities
7.6 There Are No Free Lunches on Wall Street
8.1 Net Present Value
8.2 The Internal Rate of Return Rule
8.3 The Profitability Index
The course will rely on selected chapters from the book Fundamentals of Corporate Finance by Brealey, Myers, and Marcus (8th edition). Lecture materials will be distributed in class and also available on-line at the course’s Canvas site. You will need a calculator for all class meetings, quizzes, and exams.
Lectures, case studies, classroom exercises with analysis and presentation of team works.
Exams (2@100 points each) 200
Quizzes (4@16 points each) 64
Cultural assignment 16
Standard grading scales will apply.
Reference person for the Summer Business Program: prof. Mauro Cavallone
The course is offered in English within the Summer Business Program a.a. 2019-20 (only for students of the undergraduate programs in “Economia”, “Economia aziendale” and foreign/Erasmus students). Attendance is compulsory, a maximum number of students is accepted. In oder to be considered, students must apply, following the instructions published on website https://www.unibg.it/node/388.
Policies: Attendance is mandatory. Grade deductions of 5% apply for each missed class. No notes or sharing of answers in any way is allowed during quizzes or exams.