• Describe and explain the role of liquidity in determining the cost of capital and the ability to create an optimal cost of capital.
• Demonstrating the importance of raising capital and creating a profitable capital structure.
• The ability to formulate key financial decisions on raising capital and corporate growth
• The ability to describe of the importance of market efficiency within a global financial system.
• Understanding how globalization affects capital markets and role of international financial managers.
• Understand how financial managers create shareholder wealth maximization and manage risk and return.
• Develop the ability to solve problems related to, risk and return, capital budgeting, raising capital, cost of capital, market efficiency and capital structure.

This course in Finance will focus on understanding how firms meet and manage their financial objectives. Today’s financial environment, the fundamental trade-off between risk and return, the time value of money, and valuing future cash flows will be discussed. This course will also explain financial tools and techniques, which can be used to help firms maximize value by improving decisions relating to capital. 

WHY THIS COURSE IS IMPORTANT:It is important for students to develop a basic understanding of finance concepts and their application to business management. The fact that finance is relatively complex, and is undergoing constant change in response to shifts in economic conditions, makes finance stimulating and exciting, but also challenging and sometimes perplexing. This advanced
course in finance will help those students to better understand the role of finance in business and the details of how financial management contributes to successful businesses. 

Class 1 Class Overview, Finance Theory and Financial Strategy.

Class 2 Cost of Capital: The Liquidity Route to a Lower Cost.

Class 3 Cost of Capital: Still Searching for Optimal Capital.

Class 4 Capital Structure: The Capital Structure Puzzle: Another Look at the Evidence: Michael Barclay and Clifford Smith.

Class 5 Capital Structure:  Article (1) What Do We Know About Stock

Repurchases?: Gustavo Grullon and David Ikenberry.  Article (2) Stern Stewart Roundtable on Capital Structure and Stock.

Class 6 Financing Decision: Article (1)   Raising Capital: Theory And Evidence: Clifford Smith (University of Rochester). Article (2) Financing Corporate Growth.
feedback activity: Quiz & Survey

Class 7 Financial Markets: Article (1) The Theory of Stock Market Efficiency: Accomplishments and Limitations: Ray Ball. Article (2) Market Myths: G. Bennett Stewart, III.

Class 8 Financial Markets:  The Theory of Stock Market Efficiency: Accomplishments and Limitations: Ray Ball.

Class 9 Financial Markets: Market Myths: G. Bennett Stewart, III.

Class 10 International Finance: Article (1) Financial Markets and Economic Growth: Merton Miller (University of Chicago). Article (2) Globalization, Corporate Finance, and the Cost of Capital.

Class 11 International Finance:  Globalization of Capital Markets and the Asian Financial Crisis: E. Han Kim.

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

Feedback Activity: A feedback activitity defined by the course instructor will take place app. half-way through the course. 
 

The timetable is available on  http://www.cbs.dk/files/cbs.dk/isup_timetable_2016_updated.pdf

Primary literature (must-have books):

Joel M. Stern (Editor), Donald Chew Jr, Jr. (Editor): The Revolution in Corporate Finance

ISBN-10: 1405107812, ISBN-13: 978-1405107815          

Wiley-Blackwel, 4ED 2003

Secondary literature (nice-to-have books):

Lawrence J. Gitman and Chad J. Zutter: Principles of Managerial Finance, Global Edition, 14/E

ISBN-10: 1292078340 • ISBN-13: 9781292078342

Pearson, 14 ED 2014