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2013/2014  BA-BLC_3CFI  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Exam ECTS 7.5 ECTS
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, BSc
Course coordinator
  • Gyuri Venter - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 23-08-2013
Learning objectives
At the end of the course students are expected to be able to:
  • Describe the various types of risks related to a corporation and how these impact the investment and financing decision
  • Apply various techniques for valuation of projects and corporations taking the riskiness of these into account
  • Demonstrate an understanding of a firm's payout policy, risk management, and mergers and acquisitions
  • Explain how asymmetric information among different parties of a corporation affect the investment and financing decisions, and the overall value of the firm
  • Describe financial options and apply financial options for hedging; describe real options and the roles of real options in project valuation
Examination
The exam in the subject consists of two parts:
Corporate Finance:
Weight70%
Examination formWritten sit-in exam
Individual or group examIndividual
Assignment typeWritten assignment
Duration4 hours
Grading scale7-step scale
Examiner(s)Internal examiner and external examiner
Exam periodWinter Term
Aids allowed to bring to the examLimited aids, see the list below and the exam plan/guidelines for further information:
  • Books and compendia brought by the examinee
  • Notes brought by the examinee
  • Allowed calculators
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure
Written four-hour open book exam. 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.

Student evaluation will be based on two assessments and the grade will be based on the grade point avarage of both assessments weighting 30% and 70%
Corporate Finance:
Weight30%
Examination formHome assignment - written product
Individual or group examIndividual
Size of written productMax. 5 pages
Assignment typeWritten assignment
DurationWritten product to be submitted on specified date and time.
Grading scale7-step scale
Examiner(s)Internal examiner and second internal examiner
Exam periodWinter Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure
Written 5-pages home assignment: A paper will be set by the teacher which the student have 7-10 days to prepare individually and hand in.

Student evaluation will be based on two assessments and the grade will be based on the grade point avarage of both assessments weighting 30% and 70%.
Course content and structure

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
Lectures
Expected literature
To be announced on Learn
Last updated on 23-08-2013