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2017/2018  MA-MMBFO1193U  Corporate Finance

English Title
Corporate Finance

Course information

Language English
Course ECTS 3 ECTS
Type Mandatory
Level Part Time Master
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Full-Time MBA
Course coordinator
  • Claus Parum - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 26/06/2017

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Combine and apply insight from the syllabus to solve corporate finance problems through accurate and correct calculations.
  • Show and explain all relevant calculations to solve a given problem
  • State the assumptions behind the theories / methods / models in the syllabus
  • Independently combine and logically structure the corporate finance vocabulary / theories / methods / models / regulatory/institutional/practical knowledge, and empirical evidence to solve corporate finance problems
Examination
MBF Corporate Finance:
Exam ECTS 3
Examination form Written sit-in exam on CBS' computers
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 Limited aids, see the list below:
The student is allowed to bring
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
Make-up exam/re-exam Oral Exam
Duration: 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time: With the listed preparation time: 20 Minutes
Examiner(s):: If it is an internal examination, there will be a second internal examiner at the re-exam.
Aids: Closed book
The student is only allowed to bring simple writing and drawing utensils (non-digital) to the preparation room. Students are not allowed to communicate with others during the preparation time.
Course content and structure

This course gives you an introduction to corporate finance. Corporate finance is concerned with economic decisions in corporations. First focus is on investment decisions under certainty. Then focus is on the relationship between risk and expected return. The acquired insight is combined to analyze investment decisions under uncertainty. Now focus shifts to the financing decision starting

with an overview of the efficient market hypothesis. Hereafter, we focus on understanding the importance of a firm’s payout policy, why firms choose a specific capital structure, and how to estimate the cost of capital. M&A and corporate restructuring finishes the course. On completion of the course you will understand the relationship between risk and expected return, know how to value a partly debt financed investment project or firm by estimating expected cash flows and cost of capital, have a clear understanding of when payout policy and capital structure

matters, and understand M&A and corporate restructurings.

Teaching methods
The lectures will be based on texbook readings, articles, cases and a high level of student participation.
Feedback during the teaching period
Peer assessment (exercise classes)
Student workload
Teaching 48 hours
Preparation 45 hours
Examination 5 hours
Last updated on 26/06/2017