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2014/2015  KAN-CFIVO1002U  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 Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Claus Munk - Department of Finance (FI)
Teacher: Katya Malinova.
Main academic disciplines
  • Finance
Last updated on 04-07-2014
Learning objectives
The aim of the course is to provide students a thorough understanding of central issues in corporate finance and of models that are useful for analyzing such issues in a structured manner. At the end of the course, students should be able to:
  • Analyze the profitability of corporate investment opportunities with the purpose of supporting capital budgeting decisions
  • Explain the different funding options for a firm as well as models of capital structure decisions considering, e.g., tax effects and potential bankruptcy costs
  • Analyze the dividend policy of the firm
  • Analyze how corporate decisions are influenced by agency problems and explain how agency problems can be countered.
Corporate Finance:
Exam ECTS 7,5
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) Internal examiner and external examiner
Exam period October
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.
Course content and structure
The course focuses on three major decisions of corporations: 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, mergers and acquisitions.
Teaching methods
Lectures, cases and exercices.
Student workload
Lectures 33 hours
Preparation for lectures 66 hours
Exercise classes 14 hours
Preparation for exercise classes 70 hours
Exam 4 hours
Final preparation for exam 19 hours
Expected literature
Berk, J., P. DeMarzo (2013).  Corporate Finance , 3 rd  Edition (Global). Pearson.

Selected articles.
Last updated on 04-07-2014