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2016/2017  BA-BBLCO1221U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Fourth Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc og MSc in Business, Language and Culture, BSc
Course coordinator
  • Ulf Nielsson - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 09-10-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Identify, explain, discuss and apply the core concepts, models and methods
  • Calculate, interpret and compare financial statistics, prices, returns and costs
  • Elaborate, present and discuss solutions for financial decision problems
Examination
The exam in the subject consists of two parts:
Corporate Finance 4-hour written exam:
Sub exam weight70%
Examination formWritten sit-in exam
Individual or group examIndividual exam
Assignment typeWritten assignment
Duration4 hours
Grading scale7-step scale
Examiner(s)Internal examiner and external examiner
Exam periodSummer
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
  • Notes in paper format brought by the examinee
  • Any calculators
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 home assignment:
Sub exam weight30%
Examination formHome assignment - written product
Individual or group examIndividual exam
Size of written productMax. 5 pages
Assignment typeWritten assignment
DurationWritten product to be submitted on specified date and time.
Grading scale7-step scale
Examiner(s)One internal examiner
Exam periodSpring
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Written 5-pages home assignment: A paper will be set by the teacher which the students have to prepare individually and hand in. The same assignment cannot be handed in for the ordinary exam and the re-exam.

Student evaluation will be based on two assessments and the grade will be based on the grade point avarage of both assessments weighting 30% and 70%.
Course content and structure

This is an introductory course in finance focusing on corporate applications in the

international environment. It covers the basic theories of interest rates, valuation of

streams of cash flows, pricing of risk, and it addresses the practical implications for capital

structure, project valuation, financing, and risk management.

More specifically, the course contains a basic introduction to topics such as:

- the main characteristics of corporations,

- the relationship between accounting information and the information analysed in

corporate finance,

- interest rates and the time value of money,

- the valuation of bonds and stocks,

- the investment decision,

- the financing decision including capital structure theory and the cost of capital,

- payout policy,

- international financial management and capital budgeting

- financial and real options

- risk management.
Teaching methods
Lectures
Student workload
Lectures 42 hours
Exercises 14 hours
Examination 52 hours
Preparation 98 hours
Total 206 hours
Expected literature

To be announced on Learn
Last updated on 09-10-2016