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2012/2013  KAN-CM_F87  Topics of Finance

English Title
Topics of Finance

Course information

Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Course period Autumn
Changes in course schedule may occur
Thursday 12.35-15.20, week 36-41, 43-46
Time Table Please see course schedule at e-Campus
Max. participants 50
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Claus Parum - Department of Finance
Teacher: Johannes Mouritsen - jmo.acc@cbs.dk
Administration: Louise Bruun Christensen - lbc.fi@cbs.dk
Main Category of the Course
  • Finance
Last updated on 11-05-2012
Learning objectives
Focus for this course is graduate students with basic knowledge of finance who are interested in an overview of selected issues and results of financial economics. The course will present results with practical impact from the theory of corporate finance and the theory portfolio investments.
At the end of the course, students should :
- Be familiar with fundamental theories and models of portfolio selection, pricing of shares, bonds, derivatives, as well as concepts of and tests of capital market efficiency, performance evaluation
- Be able to apply the theories and models in solving portfolio problems, pricing issues and, capital budgeting, real options and performance evaluation of corporations in practice
- Have presented results from a group project in a seminar session and responded to critic from fellow students.
Participants are required to have completed basic courses in finance (approx. 80-100 class hours or equivalent to the Danish HA-bachelor degree).
FIR and ASC students cannot participate in the course.
Oral exam
Topics of Finance:
Type of test Oral Exam
Marking scale 7-step scale
Second examiner Second internal examiner
Exam period December/January, December, not January
Aids Without preparation
Duration 20 Minutes

Course content

The course will cover the following topics:

The reading material for the course will include a textbook (Brealey, Meyers, and Marcus) in addition to a collection of articles (Dickson) on selected issues from financial economics with relevance for business practice. The articles will give condensed reviews of developments of theoretical models and ways of thinking in practice within the last decades. They will preponderantly focus on results and applications in practice and be of a non-technical nature.

The course will present issues and results from the following areas:

Valuation, Equity and Debt Finance, Managing Value, Nature of Financial Markets, Equity and Debt Markets, Portfolio Investments, Risk Management, and Derivatives.

Examples from practice to be discussed will among others include LBOs (leveraged buy-outs), IPOs (initial public offerings of equity capital), merger and acquisitions, EVA (economic value added) as measure of performance, new types of securities and securitization, active vs. passive portfolio strategies, to hedge or not to hedge risk, futures & options as risk control instruments. Some examples of mismanagement in business practice will also be discussed.

Teaching methods
The course has 30 class hours consisting of approximately 15h lectures and 15h seminars.
Expected literature

The course uses the textbooks, Brealey, Myers & Marcus:

Fundamentals of Corporate Finance, lastest edition

Tim Dickson (ed): Mastering Finance. Pitman Publishing, 1998.

Supplemental texts and handouts will be assigned for the lectures.

Last updated on 11-05-2012