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2011/2012  BA-BLC_3COF  Corporate Finance

English Title
Corporate Finance

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Bachelor
Duration One Semester
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc og MSc in Business, Language and Culture
Course Coordinator
  • Ken Lamdahl Bechmann - Department of Finance
Main Category of the Course
  • Finance
Last updated on 29 jun 2012
Learning Objectives
At the end of the course, students should to be able to:
  • describe the various types of risks related to a corporation and how these impact the
  • be able to apply various techniques for valuation of projects and corporations taking
  • describe financial options and apply financial options for hedging and risk
  • describe real options and the roles of real options in project valuation,
  • demonstrate an understanding of a company’s payout policy and of mergers and
  • explain the various ways by which corporations, including multinational
Corporate Finance
Corporate Finance:
Assessment Written Exam
Marking Scale 7-step scale
Censorship External examiners
Exam Period May/June
Aids Open Book, Written Aid is permitted
Duration 4 Hours
Student evaluation will be based on a written four-hour open book exam to take place. Students are allowed to bring textbooks, lecture notes, dictionaries and personal notes. Electronic devices (laptops, personal computers etc.) are not allowed except for non-programmable calculators. Grades are given according to the 7-point grading scale by the teacher and an external examiner.
Course Content

This is an introductory course in finance focusing on corporate applications in the

international environment. It covers the basic theories of interest rates, valuation of

streams of cash flows, pricing of risk, and it addresses the practical implications for capital

structure, project valuation, financing, and risk management.

More specifically, the course contains a basic introduction to topics such as:

- the main characteristics of corporations,

- the relationship between accounting information and the information analysed in

corporate finance,

- interest rates and the time value of money,

- the valuation of bonds and stocks,

- the investment decision,

- the financing decision including capital structure theory and the cost of capital,

- payout policy,

- mergers and acquisitions,

- international financial management and capital budgeting,

- financial and real options, and

- risk management.

Teaching Methods