FINANCIAL MANAGEMENT (LM)
OBJECTIVES OF THE COURSE
The business finance course has the following objectives:
- Strengthen the skills for the correct diagnosis of company financial problems;
- Make available models and logical assessments of financial solutions for businesses in different competitive environments;
- Reinforce the skills associated with the construction of valuation models.
Basic knowledge of spreadsheet analysis
General notions of corporate finance
COURSE CONTENTS SUMMARY
The first point involves several issues pertaining creditworthiness valuation. It is important to understand what the evaluation logic adopted by lender is.
The second point concerns the identification of circumstances involving the powers of the financial executives. Each circumstance should be analyzed with regard to availability and to the critical tools to bring under control.
The third point relates no rather to the fact that the spreadsheet is the main tool of those who deal with corporate finance and, more generally, with financial choices. This course module aims to enable students to develop their own simulation models in the field of financial decisions. This result is achieved by improving the necessary familiarity with the spreadsheet and, at the same time with the development of new operational achievements. The initial phase of the module is in fact concentrated on the analysis of the already developed decision model, the next part we focus instead on developing new models. This is accomplished on the basis of the problem chosen and the subsequent development of a correct strategy to fully exploit the potential of the technology.
A - Credit Analysis
Tools of assessment and analysis of financial firm strength. Analysis of the maximum level of debt bearable. Possible imbalances in financial management.
B - Financial policy and objectives to be pursued: improvement of rating, risk management, hedge, generation gap, iscal situation of crisis, acquisition strategies, management of governance, recovery of profit margins and development.
C - Valuation models
The logic of financial modeling and business simulation. Development and validation of models for financial decisions.
G.Tagliavini (a cura di), Excel per la finanza e il management, 2010
ASSESSMENT METHODS AND CRITERIA
Written or oral test (at the discretion of the student).
The knowledge will be assessed with 2 closed-ended questions that will count up to 2 points each
The ability to apply knowledge will be assessed with 1 exercise that will count up to 8 points
The ability to communicate with the appropriate technical language will be assessed through two closed-ended questions about the meaning of the terms used by professionals in financial markets that will cout up to 2 points each.
The autonomy of judgment and the ability to learn will be assessed with 2 open-ended questions that will cout up to 7 points each.
Acquisition of knowledge: lectures
Acquisition of the ability to apply knowledge: model construction
Acquisition of judgement skills: During the course students will be encouraged to identify strengths and weaknesses of the evaluation models and optimization of various aspects of corporate finance
Acquisition of learning skills: for each topic students will start from the illustration of the problem to be solved and the solutions will be analyzed critically, even with regard to transactions in progress on the capital market
Acquisition of technical language: Technical terms often used in the financial industry will be illustrated over the lectures.