CORPORATE FINANCE AND FINANCIAL INSTITUTIONS - 2

The course is one of the core educational activities of the degree program in Business Administration and Management. The course consists of two modules. This second module provides knowledge of the functions that markets and financial intermediaries, particularly commercial banks, perform in the management and development of businesses.

The objective of the second part of the course is to understand the conditions under which businesses can raise resources through markets and financial intermediaries.

Regarding financial markets, the course covers the conditions that define the risk and return profiles of equity securities. Concerning financial institutions, the course addresses the main services and constraints that govern the management of commercial banks.

Knowledge and understanding:
- knowledge and understanding how markets and financial intermediaries determine the economics of funds raised by companies;
- knowledge and understanding the risk and return profiles of equity instruments issued by companies;
- knowledge and understanding banking activities and the financing tools provided for companies.

Applying knowledge and understanding:
- ability to apply sound investment principles when selecting financial instruments;
- ability to apply through an investment game the investment principles learned;
- ability to select funding channels available to companies.

Students must know the contents of Principles of management and international accounting, in particular for what concerns financial accounting, the annual report and main financial statements.

Financial markets and financial institutions
Assessment of financial instrument risk
Trade-off between risk and return
Capital asset pricing model
Commercial banking: industry overview
Commercial banks' analysis through the annual report and the financial statements

Elisa Cavezzali e Ugo Rigoni, Corporate Finance & Financial Institutions, McGraw Hill, 2024 edition

Written exam for each module, without the possibility of consulting notes or books.

Exam Structure for Each Module:
- Section 1 (Essay Question):
Scores range from 0 to 6 points.
Assesses understanding of theories, institutional knowledge, and clarity in exposition.

- Section 2 (Exercise):
Scores range from 0 to 5 points.
Assesses ability to apply techniques learned in the course.

- Section 3 (Multiple Choice Questions):
5 multiple choice questions.
Each correct answer scores 1 point.
Each incorrect answer deducts 0.25 points.
No answer scores 0 points.


Module II Grade Calculation:
Sum of scores from the three sections.
The grade for the first module is summed with that of the second module to determine the overall grade for the course.


Stock Market Game (SMG) Participation:
If the student decides to participate in the described SMG, the score attributed to Section 2 (from 0 to 5 points) is replaced by the evaluation of the presented report.
The SMG evaluation is based on the quality of the report and interaction with the tutor.
Summary:
This assessment structure ensures a comprehensive evaluation of both theoretical understanding (through essay questions) and practical application (through exercises and multiple choice questions). Participation in the SMG encourages collaborative learning and rewards active engagement beyond the exam setting. Students have opportunities to demonstrate knowledge, application skills, teamwork, and engagement with the course topics.

Grading Scale:
A. Scores in the 18-22 range will be awarded for:

Sufficient knowledge and applied understanding of the course material.
Limited ability to apply knowledge and make independent judgments.
Sufficient communication skills, especially in relation to the use of specific language pertaining to markets and financial institutions.
B. Scores in the 23-26 range will be awarded for:

Fair knowledge and applied understanding of the course material.
Fair ability to apply knowledge and make independent judgments.
Fair communication skills, especially in relation to the use of specific language pertaining to markets and financial institutions.
C. Scores in the 27-30 range will be awarded for:

Good or excellent knowledge and applied understanding of the course material.
Good or excellent ability to apply knowledge and make independent judgments.
Fully appropriate communication skills, especially in relation to the use of specific language pertaining to markets and financial institutions.
D. Honors will be awarded for:

Excellent knowledge and applied understanding of the course material, judgment skills, and communication skills.

Lectures: The lecturer will conduct interactive lectures with power-point slides to explain and discuss the concepts and analytical tools.
The course is organized through lectures supported by slides to explain and discuss the theoretical concepts and analytical tools of the subject. Students will be invited to actively participate in classroom discussions, sharing their opinions and experiences in applying the concepts.

A set of selected exercises, review questions, and exam simulations will be distributed to acquire problem-solving skills and a better understanding of the concepts and theoretical issues.

Students will also be invited to participate, on a voluntary basis, in a “Stock Market Game” at the beginning of the second module of the course. Groups of students (2 - 4 students) will be required to manage a virtual portfolio of stocks using the Investopedia stock simulator. The groups, working under the supervision of a tutor, will prepare a report describing their investment decisions. This game will offer the opportunity to develop skills to apply fundamental analysis in stock selection.

Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and students with specific learning impairments

Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with
mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

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This subject deals with topics related to the macro-area "Climate change and energy" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development