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2010/2011  BA-PCFI  Corporate Finance

English Title
Corporate Finance

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Bachelor
Duration One Quarter
Course Period Third Quarter
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc in International Business
Course Coordinator
  • Carsten Sørensen - Department of Finance
Main Category of the Course
  • Finance

Taught under Open University-Taught under open university.
Last updated on 29 maj 2012
Learning Objectives
after completing the course, the students will be able to:
  • Apply the main analytical tools for the evaluation of cash flows that occur at different times with different risk.
  • Analyze the pricing of securities and the information contained in the prices that prevail in financial markets.
  • Apply the valuation methods from a social point of view and understand the role of financial markets in the economic system.
Examination
4-hour written exam (Closed book)
Exam Period May/June
Examination
Prerequisites for Attending the Exam
Course Content

Course Content: this course provides a broad overview of corporate finance covering the main tools
that financial managers use to analyze investment and financing decisions. The first set of lectures
will be devoted to introducing students to the goals pursued by corporations and to the financial side
of their operations.
Subsequently, we will be reviewing some of the accounting concepts that represent an
essential background in this field, and we will introduce the concept of “time value of money”,
which will be a key building block in developing our theory of asset pricing. The same paradigm
will also be applied to the valuation of the streams of cash flows that firms generate through their
investment projects, which will ultimately lead us to the formulation of a method for making
investment decisions.
Later in the course we will pay more attention to the role of risk in such matters, and we will
also focus on how companies can raise the cash they need for their investment projects, with a
discussion of the issues that alternative financing tools pose.

Literature

Fundamentals of Corporate Finance, 5th or 6th Edition, by Brealy, Myers, and Marcus,
McGraw-Hill International Edition