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2010/2011  KAN-AEF_AE51  Corporate Finance

English Title
Corporate Finance

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Full Degree Master
Duration One Semester
Course Period Spring
Time Table Please see course schedule at e-Campus
Study Board
Study Board for MSc in Economics and Business Administration
Course Coordinator
  • Thomas Poulsen - Department of International Economics and Management
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 29 maj 2012
Learning Objectives
The aim of the course is to provide students with a solid knowledge of theories and models of investment issues and financial problems of firms.

The purpose of the course is to provide students with a solid knowledge of theories and models of investment issues and financial problem of firms. At the end of the course, students are expected to:
understand whether and where to invest a firm’s resources;
analyse what the funding options for a firm are and what the best options may be;
understand why firms and financial markets behave the way they do;
Finally, students should be able to analyse how corporate decision are influenced by agency problems and how they can be solved.
Corporate Finance
Marking Scale 7-step scale
Censorship External examiners
Exam Period April and May/June
The exam has the form of an individual 4-hour written open book exam (all written materials and calculators, but no computers, are allowed at the exam)Cf. The Regulations for written tests at CBS. The exam is graded by an internal as well as an external examiner cf. the General Degree Regulation. The regular 4-hours exam takes place in April 2010.
Prerequisites for Attending the Exam
Course Content

This course has status as a basic course and will complement the course AE40: Firm Theory and Corporate Governance.
The objective of the firm is discussed from the point of view of owners, of creditors, of management and of employees: concurrent and conflicting interests as well as the possibilities for the design of the corporate structure and contractual form via incentives and control mechanisms are analysed.
The following topics regarding corporate decisions are treated: investment planning and choice of financing (equity, corporate bonds, leasing, etc.), the cost of capital, choice of capital structure and dividend policy, and mergers. Within this, valuation models incorporating taxes and risk are treated.


Brealey, R., S. Myers & F. Allen (2008). Principles of Corporate Finance, 9th Edition. McGraw-Hill.