Faculty
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Course Coordinator
Gabriele Lepori

Managerial Economics or Investment Appraisal

This is an introductory course in finance with a focus on corporate and political applications in the international environment. It covers the basic theories of interest rates, valuation of streams of cash flows, pricing of risk, and it draws practical implications for capital structure, project valuation, financing, and risk management. An international and/or a policy application is discussed within each topic.

After completing the course, students will be able to:

· Apply the main analytical tools for evaluation of cash flows that occur at different times and with different risk.

· Analyze pricing of securities and information contained in prices in financial markets.

· Apply the valuation methods from a social point of view and understand the role of financial markets in the economic system.

4 hour open book exam

Books, notes, dictionaries, pocket calculators (no wireless connection)

The course combines lectures and exercise sessions. Students are expected to participate in discussions of applications, in particular.

Brealey, Myers and Marcus, Fundamentals of Corporate Finance, Fifth edition, (Mc Graw Hill International Edition) is the main textbook. Applications to international and policy issues will be based on articles in journals and magazines such as the Economist.