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2016/2017  BA-BINBO1136U  Corporate Finance

English Title
Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Spring, Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
  • Ulf Nielsson - Department of Finance (FI)
Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Finance
Last updated on 18-08-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The student is expected to be able to
  • Identify, explain and apply the core concepts, models and methods
  • Calculate, interpret and compare financial statistics, prices, returns and costs
  • Elaborate and present solutions for financial decision problems
Examination
Corporate Finance:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Spring, The regular exam takes place in March/April. The make-up and re-examination takes place in August.
Aids allowed to bring to the exam Limited aids, see the list below:
  • Written sit-in-exam with pen and paper
  • Books and compendia brought by the examinee
  • Notes in paper format brought by the examinee
  • Any calculators
  • Dictionaries (only some, see specification below)
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.
The Make-up and Re-examination takes place according to the same rules as the regular exam.
Description of the exam procedure

Students are allowed to bring textbooks, lecture notes and dictionaries (basic language dictionaries, e.g. from mother tongue to English and vice versa and English/English). Electronic devices (Laptop and Personal Computers etc.) are not allowed, only calculators.

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 draws 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 mangement and capital budgeting
  • Financial and real options
  • Risk management

Thereby, the course reflects the BSc IB program learning goals in the following way:

Practical Application of Theory
The course includes many exercises and cases illustrating the practical application of theory. In particular, this is achieved both through lectures (illustrating practical applications) and assigned readings from The Economist.

Relation to a Business or an Institutional Setting
Several aspects of different types of financial markets are examined including public versus privately owned companies and various types of providers of capital (investors).

Relation to International Business or Economics
The international perspective is taken in connection with many of the topics covered during the course especially including mergers and acquisitions, financial management and capital budgeting, and risk management. Several examples are looking at multinational firms.

Research Based Teaching
The curriculum includes articles that summarize several research papers and ties such research to the practical use of the theoretic methodologies introduced in the course. Furthermore, evidence from several empirical studies is discussed during the course.

Teaching methods
The class time will be devoted to a combination of lectures, discussions of different exercises and minor cases. Exercises and cases will be home-work assignments during the course. They will not be graded but discussed in class. The material is large and well explained in the book. Therefore, students are expected to study parts of the material on their own and, as a minimum, to have read through the material and tried to solve exercises/cases assigned as home-work in advance.
Student workload
Lecture hours 42 hours
Exercixe Classes 18 hours
Examination 4 hours
Preparation 142 hours
Expected literature

Brealey, Myers and Marcus, Fundamentals of Corporate Finance, newest edition available in adequate advance of the course start, (Mc Graw Hill International Edition).

Other readings will be made available on Learn. These readings will at least include the articles from The Economist:

Please note, minor changes might occur. The teacher will upload the final reading list to Learn two weeks before the course starts.

Last updated on 18-08-2016