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2016/2017  BA-BHAAI1062U  Corporate Finance and Company Valuation

English Title
Corporate Finance and Company Valuation

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 120
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor - Michele Geraci, Nottingham University Business School, mge.msc@cbs.dk
    Sven Bislev - Department of Management, Society and Communication (MSC)
In case of any academic questions related to the course, please contact the course instructor or the academic director, Sven Bislev at sb.ikl@cbs.dk
Main academic disciplines
  • Finance
Last updated on 29/05/2017
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The aim of this module is to provide knowledge and understanding of theory and practice of corporate finance, from the most basic concept of Cash Flow and Time Value of Money, to more advanced topics, including modern portfolio theory, real options, Capital Asset Pricing Model. We will apply theory to company valuation. Students will gain a solid knowledge of both theory and practice to allow them to tackle most of common issues faced by corporate managers and investment bankers. By the end of the course, students will be able to
  • value projects, stocks and how to think critically
  • make investment decisions under uncertain scenarios
  • make Financing decisions and optimize capital structure, and
  • value companies
Course prerequisites
Accounting
Examination
Corporate Finance and Company Valuation:
Exam ECTS 7.5
Examination form Written sit-in exam
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: End of July - beginning of August 2017.

Retake exam: End of September - beginning of October 2017.

3rd attempt (2nd retake) exam: End November - beginning of December 2017.

Exam schedule is available on http://www.cbs.dk/summer http:/​/​www.cbs.dk/​uddannelse/​summer-university-programme/​exam.
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.
4 hour written sit-in exam, new exam question.

Exam form for 3rd attempt (2nd retake): 72 hours home project assignment, max. 10 pages.
Course content and structure

The aim of this module is to provide knowledge and understanding of theory and practice of corporate finance.  It concentrates on the major investment and financing decisions made by senior managers within corporations. This course represents the foundation of finance theory and it will cover a wide range of topics, A special section will be dedicate to the application of corporate finance to valuing companies with the view to prepare students to stock market investments

 

During the course, we will combine theory with practical cases studies an applications. Where possible, we will compare Western practices with those used in China, so that students can gain an understanding of range of applications and limitation of finance theory in the real world. 

 

Class 1: Overview of Corporate Finance and Financial Statement. 

Class 2: Financial Statement Analysis, Long Term Planning and Principle of Discounted Cash Flow Valuation

Class 3: Net Present Value and Internal Rate of Return

Class 4: Bond Valuation, Yield Curves and Central Banks

Class 5: Capital Budgeting, Decision Trees and Real Options  

Class 6:  Risk,Returns and Capital Asset Pricing Model I

feedback activity: 

Class 7: Capital Asset Pricing Model II: WACC and Valuation

Class 8: Capital Structure, Leverage

Class 9: Company Valuation I: Absolute Valuation

Class 10: Company Valuation II: Relative Valuation, special cases

Class 11: Options and Applications to Company's valuation
Teaching methods
The course will include lectures and class discussions. There will be case discussions to apply theory to real-life situations.
Student workload
Preliminary assignment 10 hours
Classroom attendance 33 hours
Preparation 144 hours
Feedback activity 7 hours
Examination 12 hours
Further Information

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 activity defined by the course instructor will take place approx. half-way through the course.

 

Course timetable is available on http://www.cbs.dk/uddannelse/summer-university-programme/courses.
Expected literature

Must-have:

Ross, Westerfield, Jeffrey, Lim, Tan, Wong: Corporate Finance,  Asia Global Edition

McGrawHill

2015
Last updated on 29/05/2017