Financial managment - eng

FINANCIAL MANAGEMENT

Prof. Fabrizio Erbetta

Course code: EC0013
Subject code: SECS-P08
8 ECTS – 64 hours
Location: Novara





•    Language
Italian

•    Contents
The course aims to provide in-depth knowledge in the field of financial decisions, outlining at the same time structured patterns of problem solving.

•    Course texts
Berk J., DeMarzo P., 2008, “Finanza Aziendale I”, Pearson Addison Wesley (first edition): chapter 1, chapter 3, chapter 4 (with the exception of par. 4.7 and 4.8), chapter 5 (with the exception of the appendix), chapter 6, chapter 7, chapter 8, chapter 9, chapter 14, chapter 15, chapter 16
or Berk J., DeMarzo P., 2011, “Finanza Aziendale I”, Pearson Addison Wesley (second edition): chapter 1, chapter 3, chapter 4 (with the exception of par. 4.6 e 4.7), chapter 5 (with the exception of the appendix), chapter 6, chapter 7, chapter 8, chapter 9, chapter 14, chapter 15, chapter 16
Teaching material including slides, exercises, eventual additional supports are provided at the web page of the course at the URL: https://www.dir.uniupo.it/course/view.php?id=403. Password: finman

•    Educational aims
The focus is on the financial structure, and in particular on the effect that it has on corporate value, investment decisions, assessment of capital cost and the relations between different firm’s stackholders

•    Prerequisites
It is recommended the knowledge of the fundamental mechanisms for the construction of annual financial statement

•    Teaching methods
Frontal lectures and exercises

•    Other information

•    Examination
The exam is written, with a time duration of 2 hours
The score of the written exam can be integrated with an optional oral examination, according to which the mark can be increased or reduced by a maximum of 3 points. The oral exam is only allowed on the scheduled date.
The written examination consists of two parts: PART I - THEORETICAL (maximum score 15/30) PART II - APPLIED (maximum score 17/30). The sum allows the achievement of the maximum score of 32/30, i.e. 30/30 cum laude.
The number of exams allowed is equal to 3, without jump exam, within the three sessions after the end of the course
The possibility of retirement is allowed in the first 30 minutes, after which the test will be considered in all respects valid. The retirement from an examination does not allow to safeguard eventual positive marks already achieved in a previous exams.

•    Content of the course
-    Definition of firm types
-    Theory of arbitrage and the law of one price
-    The evaluation criteria of investment: the net present value, internal rate of return, payback period, the Economic Value Added
-    The measurement of the interest rate and its signalling role
-    Bonds: features and valuing tools
-    Shares: features and valuing tools
-    Firm value and capital structure: the Modigliani-Miller theorem in a perfect market
-    Firm value and capital structure in the presence of corporate and personal taxes
-    The impact of capital structure on the incidence of distress costs: the trade-off theory
-    Debt and costs/benefits of agency