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Learning Objectives
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After completing the course, the students will be able to:
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Apply the main analytical tools for the evaluation of cash flows that occur at different times with different risk.
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Analyze the pricing of securities and the information contained in the prices that prevail in financial markets.
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Apply the valuation methods from a social point of view and understand the role of financial markets in the economic system.
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Corporate Finance:
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Assessment
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Written Exam
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Marking Scale
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7-step scale
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Censorship
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Internal examiners
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Exam Period
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April and August, The ordinary exam is in April. The re-examination is in August.
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Aids
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Please, see the detailed regulations below
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Duration
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4 Hours
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Examination
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4 hours open book exam, graded by teacher and internal examiner on the 7-point scale.
It is allowed to bring books, notes and dictionaries to the exam It is allowed to bring a pocket calculator that does not have a wireless connection. It is not allowed to bring PCs nor other devices that will enable communication with other persons (i.e. telephones, cell phones, PDAs, blackberries, etc).
The re-exam regulations are the same as for the ordinary exam.
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Course Content
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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.
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Teaching Methods
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Lectures.
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Literature
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Fundamentals of Corporate Finance, 5th or 6th Edition, by Brealy, Myers, and Marcus, McGraw-Hill International Edition
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