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2014/2015  KAN-CAEFO1077U  Corporate Finance

English Title
Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Mario Bersem - Department of Finance (FI)
Main academic disciplines
  • Finance
  • Financial and management accounting
Last updated on 04-07-2014
Learning objectives
The aim of the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance. At the end of the course, students should be able to:
  • Analyse where to invest a firm’s resources.
  • Explain the different funding options for a firm and analyse the best funding option in a given context
  • Analyse how much dividend a firm should pay.
  • Analyse how corporate decisions are influenced by agency problems and explain how agency problems can be countered.
Examination
Corporate Finance:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Case based assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period April and May/June, The retake will take place in June.
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Additional allowed aids
  • Books and compendia brought by the examinee
  • Notes brought by the examinee
  • Allowed calculators
  • Allowed dictionaries
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-hour written, open book exam. Part of the exam is based on a preliminary reading, distributed 2 days in advance, which can be taken to the exam.

Course content and structure

 Aim of the course
The aim of the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance.

Contents
From the perspective of the firm, the course focuses on three major decisions: the investment decision or where to invest a firm’s resources; the financing decision, or how to finance a given investment; and the dividend decision, or how much cash to return to shareholders.
 
The following topics are treated: risk and the cost of capital, valuation and investment planning, real options, capital structure, dividend policy, risk management, agency costs and benefits, corporate applications of option pricing, mergers and acquisitions.

Teaching methods
Lectures, cases and exercices.
Expected literature
Preliminary literature.

Berk, J., P. DeMarzo (2013). Corporate Finance, 3rd Edition (Global). Pearson

Selected Journal Articles
Last updated on 04-07-2014