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2016/2017  KAN-CAEFO1077U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Björn Imbierowicz - Department of Finance (FI)
Main academic disciplines
  • Finance
  • Accounting
Last updated on 15-08-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The aim of the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance. At the end of the course, students should be able to:
  • analyze where to invest a firm’s resources.
  • explain the different funding options for a firm and analyze the best funding option in a given context.
  • determine a firm's optimal payout policy.
  • analyze how corporate decisions are influenced by agency problems and explain how agency problems can be countered.
  • understand and explain modern capital structure theory.
  • explain and describe patterns which can be found in M&A's.
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 Winter
Aids allowed to bring to the exam Limited aids, see the list below:
  • Written sit-in-exam on CBS' computers
  • Books and compendia brought by the examinee
  • Notes in paper format brought by the examinee
  • USB key to upload your notes before the exam
  • Access to all information on CBSLearn
  • Any calculators
  • All dictionaries
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

The student is allowed to hand in graphs and mathematical equations written by hand on paper as a supplement to the answers written on the computer.
Course content and structure

Aim of the course

 

The aim of the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance.

Contents

 

This course introduces students to the fundamentals of Corporate Finance. The first part of the lectures will discuss the building blocks of the modern firm in detail. This includes the institutional background of firms and corporate governance as well as reporting, capital budgeting and cost of capital. After having investigated the main funding sources for firms such as equity and debt, students will learn about the theoretical concepts underlying modern Corporate Finance. Finally, the use of a firm’s proceeds is discussed in more detail followed by valuation, restructuring and M&A of firms.
 
The following topics are treated: corporate governance, corporate reporting, capital  budgeting - project evaluation and cost of capital, long-term financial planning - equity and debt, capital structure theory, payout policy, financial modeling, financial and real options, mergers and acquisitions
Teaching methods
Lectures, cases and exercices.
Student workload
Preparation 158 hours
Classes and Exercises 44 hours
Exam 4 hours
Expected literature

Preliminary literature.

Berk, J., P. DeMarzo (2013). Corporate Finance, 3rd Edition (Global). Pearson.

ISBN-10: 0-273-79202-4

ISBN-13: 978-0-273-79202-4

Selected journal and newspaper articles
Last updated on 15-08-2016