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2014/2015  KAN-CFSMO1119U  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 Parum - Department of Finance (FI)
Claus Parum
Main academic disciplines
  • Finance
Last updated on 04-07-2014
Learning objectives
  • Combine and apply insight from the syllabus to solve corporate finance problems through accurate and correct calculations.
  • Show and explain all relevant calculations to solve a given problem.
  • State the assumptions behind the theories / methods /models in the syllabus.
  • Independently combine and logically structure the corporate finance vocabulary /theories / methods / models / regulatory/institutional/practical knowledge, and empirical evidence to solve corporate finance problems.
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 Autumn 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
The exam has the form of an individual 4-hour written exam. No technical nor written aids are allowed at the exam, except from Texas Instruments TI-30X IIS (solar), Texas Instruments TI-30X IIB (battery), TI-30X IIS/IIB, TI-30XS MultiView and TI-30XB MultiView calculators.

The regular exam will be held in January. The make-up/re-exam takes place in February.
Course content and structure

 The course is organized as follows:

  • The course starts with a general introduction to corporate finance and a discussion of the goal of the corporation.
  • First focus is on the capital budgeting decision.
  • We start with investment decisions under certainty.
  • Hereafter, we focus on the relationship between risk and return (portfolio risk, beta and CAPM).
  • Then we analyze capital budgeting and risk, and practical problems in capital budgeting.
  • Then focus shifts to the financing decision starting with an overview of the efficient market hypothesis.
  • Hereafter, we focus on three central areas within the field of corporate finance: To understand the importance of a firm’s payout policy, why firms choose a specific capital structure, and how to estimate the cost of capital.
  • An analysis of options, financial leasing, mergers, corporate restructuring, corporate governance, and corporate control finishes the course.

Course status
This is a basic course in corporate finance that complements strategic decision analysis and forms the basis for the second semester course in applied corporate finance and governance.

Teaching methods
Lectures with exercises.
Expected literature

Pack of Brealey P of CF 11e and Connect+ Codes Card  ISBN – 9780077155070
McGraw Hill.


Last updated on 04-07-2014