Corporate Financing and Investment Decisions (2018/2019)

Course code
4S00409
Name of lecturer
Lorenzo Faccincani
Coordinator
Lorenzo Faccincani
Number of ECTS credits allocated
6
Academic sector
SECS-P/11 - FINANCIAL MARKETS AND INSTITUTIONS
Language of instruction
Italian
Period
secondo semestre lauree triennali dal Feb 18, 2019 al May 31, 2019.

Lesson timetable

Go to lesson schedule

Learning outcomes

The course aims to examine, in the perspective of non financial firms, the principles of corporate finance by deepening the characteristics of the net present value in the capital budgeting decisions, the choices of financial structure, the financing instruments in the short and medium-long term, the dividend policy, the payment instruments in international trade and the operations of hedging of financial risks (currency risk, interest rate risk and commodity risk); moreover the topics of project finance and patent box are examined during the course.
At the end of the lessons, the Student must be able to analyze, interpret and evaluate in a critical and autonomous way the firm’s decisions that have financial implications.

Syllabus

The principles of corporate finance.
The determination of the relevant cash flows and the cost of capital in the net present value.
The decisions of financial structure. The benefits and the costs of borrowing.
The Initial Public Offering (IPO).
The technical forms of medium and long-term financing.
The technical forms of short-term financing.
The dividend policy.
Payment instruments in international trade.
Introduction to Corporate Financial Risk Management.
The project finance.
The patent box.

The teaching methods consist of lectures and examples designed to facilitate the understanding and interpretation of theoretical concepts.

Reference material
Volume Create for the course “Analisi e copertura dei fabbisogni finanziari” (academic year: 2018/2019) published by McGraw Hill.
Students must also prepare the material loaded on the elearning page of the course.
With the aim to a fruitful learning of the topics covered in the teaching it is appropriate that the Student has an adequate knowledge of the concepts taught in the course of “Financial markets and Institutions”.

Reference books
Author Title Publisher Year ISBN Note
AA.VV. Volume create del corso di "Analisi e copertura dei fabbisogni finanziari" (a.a. 2018-19 - sedi di Verona e Vicenza) McGraw-Hill 2019 978-13-073-7899-3

Assessment methods and criteria

The exam is written and is directed to verify the knowledge of the topics in the program. It consists in three questions (open theoretical questions and exercises to be solved by providing a commentary to the obtained results), structured to ascertain whether the student is actually able to treat with awareness and critical sense the firms’ financial decisions. The duration of the test is variable from a minimum of one hour and a half to a maximum of two hours.

There will be a mid-term exam at which the Student may elect to participate. The mid-term exam will focus on the following topics:
- the principles of corporate finance;
- the determination of the relevant cash flows and the cost of capital in the net present value;
- the decisions of financial structure. The benefits and the costs of borrowing;
- the Initial Public Offering (IPO).
The mid-term exam consists of a written with 3 questions (theoretical open questions and exercises). The duration of the test is variable from a minimum of one hour and a half to a maximum of two hours. To pass the mid-term test the minimum vote is 18/30.

Those who pass the mid-term exam will have to bear, in one of the appeals of the session of june-july 2019, a test which will focus on the second part of the course:
- the technical forms of medium and long-term financing;
- the technical forms of short-term financing;
- the dividend policy;
- payment instruments in international trade;
- introduction to Corporate Financial Risk Management;
- the project finance;
- the patent box.
Also the test on the second part of the program consists of a written with 3 questions (theoretical open questions and exercises) and has a duration variable from a minimum of one hour and a half to a maximum of two hours.

Compared to the final vote, the result obtained in the mid-term exam will have a weight equal to 50%. The final vote will be the average of the vote of the mid-term exam and that of the second test; this average will rounded upward if the decimal fraction is equal to 0.50. In order to pass the exam, the vote obtained in the test on the second part of the program must be at least 18/30.

The Student may refuse the vote of the mid-term exam. The notification must be made by email at lorenzo.faccincani@univr.it prior of the 6 pm of the day before the first appeal of the session of june-july 2019. In case of rejection of the vote of the mid-term test the Student must, of course, take the exam on the whole program.
The Student can not only refuse the vote obtained in the test on the second part of the program; this means that if, after passing the second test, the Student is not satisfied of the vote, he will have to refuse the result of the average of the two tests, losing then automatically the vote of the mid-term exam. The refusal of the vote must be notified at the email address lorenzo.faccincani@univr.it prior to the moment of the registration of the final vote.
The Student loses the vote of the mid-term exam if he does not sustain the second test in one of the appeals of the session of june-july 2019.

On e-learning platform, all the exam topics will be available immediately after the exam.

Finally, the exams are the same for attending and non-attending Students.

STUDENT MODULE EVALUATION - 2017/2018