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Summary Teaching Assignment
Academic Year 2018/2019
School School of Industrial and Information Engineering
Course 052802 - FINANCE LAB + CORPORATE FINANCE
Cfu 15.00 Type of Course Integrated Course
Innovative teaching The course includes  5.0  credits in Innovative Teaching as follows:
  • Subject taught jointly with companies or organizations
Lecturers: Titolare (Co-titolari) Giudici Giancarlo

Programme Track From (included) To (excluded) Course
Ing Ind - Inf (Mag.)(ord. 270) - BV (479) MANAGEMENT ENGINEERING - INGEGNERIA GESTIONALE*AZZZZ052802 - FINANCE LAB + CORPORATE FINANCE
097749 - CORPORATE FINANCE B

Goals
The course objectives are as follows:
  • Analyzing the financial structure and governance decisions of a company
  • Learning how the company may raise money to finance growth, projects and investments, and which instruments can be used
  • Analyzing derivatives contracts, their valuation methodologies and how they can be used to hedge company liabilities

The course fits into the overall program curriculum pursuing some of the defined general learning goals. In particular, the course contributes to the development of the following capabilities:

  • Understand context, functions, processes in firm and investment financing, equity capital raising, financial engineering and asset allocation

  • Design solutions applying a scientific and engineering approach (Analysis, Learning, Reasoning, and Modeling capability deriving from a solid and rigorous multidisciplinary background) to face problems and opportunities in corporate finance
  • Interact in a professional, responsible, effective and constructive way in a working environment, also motivating group members


Expected learning outcomes

The learning objectives are:

  • Comprehension of the logics of the firm financial structure, selecting between equity and debt

  • Demonstrate the knowledge of the characteritics and pricing models of debt and equity securities

  • Capability to evaluate the effects of financing decisions on firm and investment appraisal, designing solutions and models

  • Demonstrate the knowledge of the characteritics and pricing models of derivatives (forward contracts and options) and their use in hedging strategies
  • Understanding the processes and techniques of equity capital raising
  • Knowledge of the basis of financial engineering and structuring complex financial products
  • Understanding the asset allocation strategies and main indicators for the performance measurement
  • Knowledge of the fintech and insurtech opportunities both as self-standing initiatives and as cooperation with incumbents
  • Approaching practical issues in finance and learning to deliver solutions
  • Demonstrating skills and capabilites to manage projects in a professional environment in the finance business

 


Topics

The course of Corporate Finance + Lab (15 cfu) is integrated in two modules.

 

First Semester: Corporate Finance (5 cfu)

The course of Corporate Finance (5 cfu) analyzes the process of corporate investments’ financing through the selection of security typology, capital issuance, corporate governance and hedging.
 
Topics:
  • Financial structure: Modigliani & Miller propositions, debt vs. equity, agency costs
  • Debt raising: bonds (valuation, duration, term structure of interest rates, volatility)
  • Equity raising: shares (valuation)
  • Interactions between value and financing (adjusted present value, wacc)
  • Derivatives (forward contracts, options)
 
Second semester: Lab (10 cfu)
 

The Finance Lab provides a unique opportunity to go in depth into the financial matters illustrated over the track, with an experimental approach and an integrated logic. In particular, the lab addresses both corporate finance and market finance themes, through frontal lectures, case studies, and business & portfolio simulation.

The topics introduced in the Finance Lab are:

- equity capital raising

- financial engineering and structured products

- asset allocation 

- fintech and insurtech

During the laboratory, participants will have the opportunity to develop a project, in cooperation with banks, financial and industrial companies, where students could experience the real life of a career in finance. Topics introduced in the course are, among others, equity capital issues, advanced topics in derivatives, asset management and asset pricing.

 


Pre-requisites

- Knowledge of cash flow discounting methodologies

- Knowledge of the balance sheet structure (A&L, profit&losses, cash flow statement)

- Knowledge of the Capital Asset Pricing Model (CAPM)


Assessment

The final mark will be determined as follows:

33% mark of the Corporate Finance course

33% mark of the written text (see above)

33% mark of the Project Work (see above)


Bibliography
Risorsa bibliografica facoltativaHillier, Corporate Finance (European Edition)
Risorsa bibliografica obbligatoriaBrealey Myers, Principles of Corporate Finance

Software used
No software required

Learning format(s)
Type of didactic form Ore di attività svolte in aula
(hh:mm)
Ore di studio autonome
(hh:mm)
Lesson
75:00
112:30
Training
30:00
45:00
Computer Laboratory
0:00
0:00
Experimental Laboratory
0:00
0:00
Project Laboratory
45:00
67:30
Total 150:00 225:00

Information in English to support internationalization
Course offered in English
Study material/slides available in English
Textbook/Bibliography available in English
It is possible to take the examination in English
Support available in English
schedaincarico v. 1.10.0 / 1.10.0
Area Servizi ICT
15/07/2024