Degree course: 
Corso di First cycle degree in ECONOMICS AND MANAGEMENT
Academic year when starting the degree: 
Academic year in which the course will be held: 
Course type: 
Optional subjects
Second semester
Standard lectures hours: 
Detail of lecture’s hours: 
Lesson (40 hours)


Final written test, which lasts an hour and a half, divided as it follows:
3 theoretical questions (with a maximum of 9 points), to test the knowledge of definitions and basic principles of Corporate Finance;
3 exercises (max. 15 points), to verify the application of quantitative tools to evaluate real and financial investments;
4 multiple-choice questions (max. 6 points), to test reasoning ability.

If, during the academic year 2020/21, due to the restriction measures related to the health emergency, it will not be possible to take face-to-face examinations, the final exam will be carried out via the e-learning platform and will be structured as it follows:
15 closed-ended questions (such as multiple choice, calculated, drag & drop, matching, etc.) to be completed in 30 minutes (max. 15 points overall);
2 exercises to be carried out in “pen & paper” mode, to be uploaded to the e-learning platform Moodle (time available equal to 40 minutes max. of 15 points overall).

For the purpose of passing the exam is necessary to achieve a score of at least 18 points over 30. If the student got the maximum score (30 over 30 points) he will be awarded a final score of 30 over 30 cum laude.
Mid-term exams are not scheduled.

Voto Finale

This course aims to provide fundamentals of corporate finance, focusing on theories, policies and basic instruments related to firms’ investment decisions (among others, make or buy decisions, capital budgeting, financial investments, …) and financing policies.

Learning Outcomes
At the end of the course the student will be able:
to know and understand the main economic and financial variables used to estimate firms’ investment projects
to make a judgment (accept/reject) with regards investing or financing decision
to know the impact of main variables used in capital markets’ theory.

1) Introduction to Corporate finance (4 hours)
1.1 The role of corporate finance and capital markets
1.2 Consumption and investment
1.3 Shareholders and bondholders’ payoff

2) Present value and cash-flow (4 hours)
2.1 Intertemporal consumption choices
2.2 Elements of financial mathematics: interest rates, capitalization, present and future values

3) Capital budgeting and investment decisions (14 hours)
3.1 The Net Present Value (NPV)
3.2 Alternative criteria for investment decisions
3.3 The estimate of cash-flows
3.4 Complex choices of capital budgeting

4) The valuation of financial investments (4 hours)
4.1 Bonds evaluation
4.2 Stocks evaluation

5) Risk and return and capital markets theory (12 hours)
5.1 The theory of capital markets
5.2 Measuring assets’ and portfolio’s return
5.3 Measuring assets’ and portfolio’s risk: variance and covariance
5.4 Efficient portfolios and capital market line
5.5 Capital markets equilibrium: the beta and the Capital Assets Pricing Model
5.6 The Securities Market Line

6) Some remarks about financing decision and firm’s financial structure (2 hours)

• Handbook: Hillier, Ross, Westerfield, Jaffe e Jordan [RHWJJ], “Corporate Finance”, McGraw-Hill, III ed., 2018 [ita]
• Slides, exercises and other materials will be available on e-learning platform Moodle.


Teaching lessons and exercises, for a total of 40 hours.
No other forms of supplementary teaching are scheduled.
As required by the University guidelines, teaching lessons will be accessible remotely, via Microsoft Teams. All information will be provided at the beginning of the semester.

Office Hours
Room #20, first floor, Department of Economics, Via Monte Generoso, 71 – Varese
Office hours is currently available only remotely, via Microsoft Teams. The calendar is available on the teacher’s webpage (
Students can e-mail the teacher to arrange a meeting in another date/time.

Join the virtual classroom
For those students that will cannot attend lessons in person, in the e-learning page of the course (, all useful information in order to join the virtual classroom and distance learning will be available to join the virtual classroom and distance lessons.