N91466 Financial Engineering

At the end of the course the student will be able to:

1.       realize a financial analysis and determine the company’s financial situation

2.       set up a financial plan

3.       measure the cost of capital

4.       evaluate the financial debt sustainability and the company’s capital structure

5.       identify the company’s value according to the market

6.       identify the main financing tools for the company

7.       evaluate fixed income securities and shares

8.       analyze time series of financial data

9.       verify the main stylized fact in financial series

10.   build and manage a financial portfolio according to the financial theory

11.   use derivatives (futures and options)

At the end of the course the student will be able to demonstrate knowledge on and understanding of:

a. company’s financial equilibrium and dynamic financial analysis

b. financial panning

c. company’s financial sustainability and cost of capital

d. value of a company on the market

e. characteristics of financing tools

f. bonds and shares pricing

g. derivatives: futures and options

h. financial time series analysis

i. portfolio securities weights according to different methodologies

The course provides:

- financial tools to actively deal with financial management within the company  - with regard to ordinary and extraordinary decisions. Financial platform will be used as well as valuation modelling in Excel

- concepts related to financial markets, using mathematical and statistical tools and software

In a rigorous analytical framework the course provides several real applications and favours a hands-on approach. Main topics are the following:

• Financial market: intermediaries and tools
• The company: financial equilibrium and dynamic financial analysis
• Financial planning
• Debt financing: tools, characteristics, players
• Equity financing: tools, characteristics, players
• Capital structure, cost of capital and risk
• Company’s evaluation: different approaches
• Bonds and shares pricing
• Financial markets statistics
• Financial portfolios and returns
• Strategical asset allocation
• Derivatives - Futures and options

Learning is supported by face to face lectures, cases and applications to allow students to apply the concepts illustrated during classes. Students are expected to:

-          regularly study the topics covered during the lectures

-          take an active part in every aspect of the lectures

-          regularly monitor the course site on “my.liuc.it”.

Attending students can take two midterm written exam or an overall written exam starting from the winter session (January/February).

Non attending students can take the overall written exam starting from the first date of the winter session (in January) and it will cover the overall topics indicated on the lectures schedule (available on the course site).

In June 2020, the financial engineering exam will be an oral exam using MS Teams. During the exam the students will be asked to answer to theorical or practical questions maybe sharing the screen or showing a written text. The questions will be similar to the ones in the written exam. At the end the evaluation will be uploaded on SOL.

At least one week before the exam date an announcement on the AVE at the link ecorsi.liuc.it will be published with the practical information.