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2015/2016  MA-MMBFO1193U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 3 ECTS
Type Mandatory
Level Part Time Master
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Full-Time MBA
Course coordinator
  • Claus Parum - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 17-07-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • 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
Examination
The exam in the subject consists of two parts:
Corporate Finance - Midterm:
Sub exam weight50%
Examination formWritten sit-in exam
Individual or group examIndividual
Assignment typeWritten assignment
Duration2 hours
Grading scale7-step scale
Examiner(s)One internal examiner
Exam periodWinter
Aids allowed to bring to the examLimited aids, see the list below:
  • Written sit-in-exam with pen and paper
  • Books and compendia brought by the examinee
  • Allowed dictionaries
  • Allowed calculators
  • Notes in paper format brought by the examinee
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.
Corporate Finance:
Sub exam weight50%
Examination formOral Exam
Individual or group examIndividual
Duration20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation timeWith the listed preparation time: 20 Minutes
Grading scale7-step scale
Examiner(s)Internal examiner and second internal examiner
Exam periodWinter
Aids allowed to bring to the examLimited aids, see the list below:
Textbook from syllabus, notes on paper, handheld calculator
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

This course gives you an introduction to corporate finance. Corporate finance is concerned with economic decisions in corporations. First focus is on investment decisions under certainty. Then focus is on the relationship between risk and expected return. The acquired insight is combined to analyze investment decisions under uncertainty. Now focus shifts to the financing decision starting

with an overview of the efficient market hypothesis. Hereafter, we focus on understanding the importance of a firm’s payout policy, why firms choose a specific capital structure, and how to estimate the cost of capital. M&A and corporate restructuring finishes the course. On completion of the course you will understand the relationship between risk and expected return, know how to value a partly debt financed investment project or firm by estimating expected cash flows and cost of capital, have a clear understanding of when payout policy and capital structure

matters, and understand M&A and corporate restructurings.
Teaching methods
The lectures will be based on texbook readings, articles, cases and a high level of student participation.
Last updated on 17-07-2015