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2016/2017  KAN-CCMVI2041U  Graduate Corporate Finance

English Title
Graduate Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Course instructor - Michael Nugent, Lecturer & Graduate Director of Masters of Finance, Stony Brook University, mn.acc@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
  • Corporate governance
  • Finance
  • Globalization and international business
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:
  • 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.
Course prerequisites
Graduate Corporate Finance:
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

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 an understanding of financial 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 course in finance will help those students to better understand the role of finance in business and how financial management contributes to growth and profitability of successful businesses. 


Class 1. Overview of Financial Management: Article: Finance Theory and Financial Strategy: Stewart c. Myers.
Class 2.   Financial Markets and Institutions:. Article: The Global Financial Crisis and the Efficient Market Hypothesis Authors: Ball, Ray
Class 3. Analysis of Financial Statements: Article: Impact of financial ratios and business combination on stock price. Authors: Ferrer, Rodiel C.; Tang, Alger 
Class 4. Time Value of Money: Article: Falcon Crack T, Roberts H. Credit Cards, Excess Debt, and the Time Value of Money: The Parable of the Debt Banana. 
Class 5. Interest Rates, Risk and Return: Article:  Czaja M, Scholz H, Wilkens M. Interest Rate Risk Rewards in Stock Returns of Financial Corporations. 
Class 6. Stocks and Their Valuation: Article: Grullon G, Ikenberry D. What do we know about stock repurchases? 
Class 7. Cost of Capital: Article: Stewart C. M. Still Searching for Optimal Capital Structure. 
Class 8. Capital Budgeting: Article: Pinches G. Myopia, Capital Budgeting and Decision Making. 
Class 9. Cash Flow Estimation and Risk Analysis: Financing Corporate:  Article (1)  Growth Cornell B, Shapiro A. Financing Corporate Growth
Class 10 &11.  Capital Structure: Article: Barclay M, Smith C. The capital structure puzzle: another look at the evidence. 

Teaching methods
The instructional format will include: Tests, lecture notes, case studies, in class examples, worksheets, excel spreadsheets, and articles from financial press, which will form the basis for of the class discussions.
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



Eugene F. Brigham, Joel F. Houston,

Fundamentals of Financial Management 14e

ISBN-13: 9781285867977  ISBN-10: 1285867971

Cengage Learning

Edition/year 14th 2015

Last updated on 29/05/2017