2013/2014
BA-2PCF Principles of Corporate Finance
| English Title |
| Principles of Corporate
Finance |
|
|
| Language |
English |
| Exam ECTS |
7.5 ECTS |
| Type |
Mandatory |
| Level |
Bachelor |
| Duration |
One Semester |
| Course period |
Spring |
| Time Table |
Please see course schedule at e-Campus |
| Study board |
Study Board for Asian Study Programme
|
| Course
coordinator |
- Evis Sinani - Department of International Economics and
Management (INT)
|
| Main academic
disciplines |
- Finance
- Economics, macro economics and managerial
economics
|
|
Last updated on
14-08-2013
|
| Learning objectives |
At the end of the course the students
should be able to:
- • Define and discuss key concepts from all relevant theories
and models introduced in the course
- • Apply the correct financial management techniques to a given
issue
- • Calculate the technical tools of financial management from
the perspective of a chief financial officer in
decision-making
- • Interpret the results of the analysis with respect to the
efficiency of decision making
|
| Examination |
|
Principles of
Corporate Finance:
|
| Examination form |
Written sit-in exam |
| Individual or group exam |
Individual |
| Assignment type |
Written assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Summer Term |
| Aids allowed to bring to the exam |
Closed Book: no aids |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead.
|
Description of the exam
procedure
4-hours written examination based on
one or more questions in relation to the course literature. For
detailed information, please check the ASP Programme
Regulations.
|
|
| Course content and
structure |
|
This course is an overview of the principles of corporate
finance andis designed for undergraduate students who have no prior
knowledge of corporate finance. Importance is placed on techniques
related to investment decisions and financial decisions made by
companies. Financial managers in corporations work with other
managers to identify investment opportunities, to analyze and value
the opportunities and to decide whether and how much to invest, as
well as decide how to raise the money to finance corporation’s
investments.
Therefore we start with an introduction of what a corporation is,
and describe the role of a corporation’s financial manager. We then
proceed with how to measure corporate performance (value added,
efficiency, profitability etc), since the main goal of corporations
is maximizing the current market value.
Since companies invest in a lot of things such as tangible or
intangible assets, the decision on capital outlays is among the
most significant a firm will have to make. In introducing decision
making on capital expenditure, first the students will be exposed
to “time value of money” calculations and then proceed to the
fundamentals of valuation of bonds and stocks, emphasizing present
value techniques. These techniques will be also useful during
capital budgeting decisions, which involve comparing the different
investment criteria in the presence of capital shortage. After
careful grounding in valuation practice and theory, the concepts of
the cost of capital and capital structure will be examined,
covering risk-return analysis in capital budgeting.
|
| Teaching methods |
| Mix of lectures, exercises and
casework. Cases, when necessary, will be made available to
students. |
| Further Information |
|
The course is designed for undergraduate students who have no
prior knowledge of corporate finance. Therefore, the course is
especially integrated with the ASP courses in Microeconomics and
Accounting, as well as the other courses at the 1st, 2nd and 3rd
year.
|
| Expected literature |
|
Main Text Book
Richard A. Brealey, Steward C. Myers, and Alan J. Marcus.
Fundamentals of Corporate Finance. Sixth edition, McGraw Hill.
Case Studies Book
StanleyBlock, Geoffrey Hirt. Case Book on Fundamentals of
Corporate Finance. 12th edition. McGraw Hill.
The cases to be used in the course will be interpreted from an
Asian perspective.
|
Last updated on
14-08-2013
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