CORPORATE BANKING
- Overview
- Assessment methods
- Learning objectives
- Contents
- Bibliography
- Delivery method
- Teaching methods
- Contacts/Info
There are no explicit prerequisites.
• Attending students: group work/assignment to be presented in class (further details are available on e-learning platform) and final “short” written test, composed of 1 question (weight equal to 20% of the score), 2 exercises (50%) and 4 multiple choice questions (30%). The “short” written test takes one hour. The assignment is mandatory. The final score is a weighted average of assignment’s score (30%) and “short” written test’s score (70%).
• Not attending students: “regular” written test, which takes an hour and a half, with 3 questions (weight is about 25% of the score), 3 exercises (40%) and 8 multiple-choice questions (35%).
For the purpose of passing the exam is necessary to achieve a rating of at least 18 points over 30. Student can report the highest score (30 cum laude) if the total score is equal to 30 points over 30.
Mid-terms exams are not scheduled.
The course analyzes the different sources of corporate financing (financial markets and intermediaries).
The topics are analyzed in the economic perspective of the entrepreneurs.
At the end of the course students will be able to know and understand the main economic and financial variables used to evaluate different type of funding and their impact on firms’ capital structure.
Moreover they should be able to make a judgment related to the acceptability of financing decisions and their impact on company’s risk exposure.
A) FINANCIAL INSTRUMENTS, INTERMEDIARIES AND MARKETS
1. Introduction and overview of corporate financing (about 3 hours)
2. The role of financial intermediaries and markets (about 3 hours)
3. Interest rates and securities valuation (about 6 hours)
4. How financial intermediaries and markets evaluate firms (about 9 hours)
5. Securities markets: Money and bond markets; Equity markets (about 8 hours)
6. Derivative securities markets (about 3 hours)
B) CORPORATE BANKING AND CORPORATE FINANCE
7. Investments’ valuation (about 3 hours)
8. The estimation of cash-flows (about 3 hours)
9. Firms’ financial structure and the impact on firms’ valuation (about 2 hours)
The course material required is as follows:
• A. Saunders and M.M. Cornett, “Financial Markets and Institutions”, 5th edition, International Edition, McGraw-Hill Irwin, New York, 2012
• R.A. Brealey, S.C. Myers and F. Allen, “Principles of corporate finance”, 10th ed., Global Edition, McGraw-Hill Irwin, New York, 2011.
Selected chapters will be indicated in class and published with a notice on e-learning platform (http://elearning3.uninsubria.it).
Both of books are available at the Library of Economics (MTG 71, ground floor).
Other materials (slides of the lectures, tutorials and study materials) will be available online on e-learning platform.
No other teaching material (handouts, summaries, etc..) is authorized by the teacher.
Teaching lessons and exercises. The total amount of hours delivered in class is equal to 40.
OFFICE HOURS
• Department of Economics, Via Monte Generoso, 71 – Varese
• In the I semester of A.Y. 2018/19, office hours are scheduled on the Wednesdays at 11.00 am (office #20, first floor). Any change will be published on Lecturer’s webpage (https://www.uninsubria.it/hpp/andrea.uselli).