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2014/2015  KAN-CCMVI2000U  Advanced Graduate Corporate Finance

English Title
Advanced Graduate Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Course period Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Course intructor - Dr. Joseph French, University of Northern Colorado
    Patricia Plackett - Department of Operations Management (OM)
Main academic disciplines
  • Finance
  • Management
  • Financial and management accounting
  • Economics, macro economics and managerial economics
Last updated on 12-02-2014
Learning objectives
At the end of the course the student should be able to:
  • Understand the framework for considering corporate finance problems and issues
  • Communicate an in-depth understanding of corporate finance theory and
  • Understand the interface between theoretical models and empirical tests of these models
  • Discuss finance research questions and communicate the results of academic papers
  • Use financial information to address advanced corporate finance problems
Course prerequisites
This is an advanced course in corporate finance at the graduate level that builds upon the basic principles and concepts taught in an introductory level graduate finance course, and introduce advanced concepts in corporate finance. Thus, students enrolling in this course must have successfully completed the introductory graduate level finance course, which itself requires successful completion of courses in accounting, economics and statistics.
Prerequisites for registering for the exam
Number of mandatory activities: 1
Compulsory assignments (assessed approved/not approved)
Mandatory Mid-term Assignment: Students will be required to submit 3-page proposals on the topic for their Home Assignments.
Examination
Home Assignment:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 15 pages
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure
This course deals with contemporary issues in corporate financial theory and related empirics. It is designed to immerse students in key corporate finance research and practice, thereby providing them with a framework for considering a wide range of corporate finance problems and issues. In particular, the following topics are studied: valuation and capital budgeting, capital structure, payout policy, equity and debt financing, behavioral corporate finance, and corporate governance. The material studied during the course is a blend of key theoretical, applied, and empirical corporate finance work. The main objective of this course is to provide an advanced background and deeper understanding in the mainstream issues of modern corporate finance.  

The course will include a Preliminary Assignment in Class 3 in the form of a quiz to test the students’ basic financial, economic, and statistical knowledge based on a small selection of review materials. The review materials will also form the basis of a detailed discussion, which will be used as a springboard to more advanced topics. Each week students will also be expected to read several academic papers and be prepared to discuss/present the papers in class. The classes will also contain an applied component to ensure that students are familiar with the advanced techniques used in the practice of corporate finance today. Students will be required to submit a Home Assignment displaying both research competence and an understanding of an advanced corporate finance topic. The Mandatory Mid-term Assignment for the course is a 3-page proposal for the Home Assignment that is to be submitted in Class 5.

Class Schedule
ClassTopic (Reading-Text book)
Class 1Introduction (Ch. 1+3)
Class 2Valuation (Ch. 3 + 4)
Class 3Capital Budgeting  and Preliminary Assignment (Ch. 7+9)
Class 4Capital Structure I (Ch. 15)
Class 5Capital Structure  II and Mandatory Mid-term Assignment
Class 6Payout Policy (Ch. 16)
Class 7Corporate Governance I (Ch. 12)
Class 8Corporate Governance II (Ch. 13)
Class 9International Corporate Finance (Ch. 19)
Class 10Behavioral Corporate Finance (Ch. 20)
Class 11Comprehensive Review
Teaching methods
Classes will consist of a mix of lectures, in-depth discussions and formal academic paper presentations.
Further Information
Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 3 in order to 'jump-start' the learning process.
Expected literature
  1. Copeland, T. S., Weston, F., & Shastri, K. (2005), "Financial Theory and Corporate Policy," Fourth Edition, Addison Wesley, ISBN 0-321-22353-5 (1024 pages)
     
  2. Academic journal articles constitute the primary material for the course. The reading list will be available online prior to the beginning of the course.
Last updated on 12-02-2014