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2016/2017  KAN-CCMVV1149U  Topics of Finance

English Title
Topics of Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 50
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Claus Parum - Department of Finance (FI)
Teacher: Johannes Mouritsen
Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Finance
Last updated on 20-04-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: Focus for this course are graduate students with basic knowledge of finance who are interested in an overview of selected issues and results of financial economics. The course will present results with practical impact from the theory of corporate finance, the theory portfolio investments, risk management and derivatives.
At the end of the course, students should :
  • Be familiar with fundamental theories and models of portfolio selection, pricing of shares, bonds, derivatives, as well as concepts of and tests of capital market efficiency, and performance evaluation
  • Be able to apply the theories and models in solving portfolio problems, pricing issues and, capital budgeting, real options and performance evaluation of corporations in practice
  • Have presented results from a group project in a seminar session and responded to critique from fellow students and teacher.
Course prerequisites
Participants are required to have completed basic courses in finance (approx. 80-100 class hours or equivalent to the Danish HA-bachelor degree).
FIR, FIN and ASC students cannot participate in the course.
Examination
Topics of Finance:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Oral group exam based on written group product
Number of people in the group 3-5
Size of written product Max. 50 pages
The group must turn-in a pp presentation og max 50 pages

Students who wish to have an individual exam might be able to write a term paper in the course. Please see the cand.merc. rules for term papers for more information.

30 min. group exam and 10 min for individual examination
Assignment type Project
Duration
Written product to be submitted on specified date and time.
10 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-step scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
*Har den studerende deltaget i udarbejdelsen af det skriftlige produkt til den ordinære eksamen, men ved dokumenteret sygdom ikke deltaget i den mundtlige prøve, afvikles sygeprøven på baggrund af det allerede indleverede skriftlige produkt.

*Hvis en hel gruppe ikke består den mundtlige udprøvning, skal gruppen genindlevere et revideret produkt.

*Har en studerende i gruppen ikke bestået den mundtlige udprøvning, skal fagansvarlig bestemme om den studerende skal indlevere et revideret produkt og på den baggrund deltage i den mundtlige omprøve, eller om den studerende kan gå til omprøve i det oprindelige produkt.
Description of the exam procedure

Group exam:

All group members (3 -5 students) present the core knowledge (i.e. what did we learn) obtained in group  work from study, class presentation, and discussion of the topics selected by the group. 

Approximately 30 minutes are reserved for the group exam. The group must turn-in a pp presentation og max 50 pages.

 

Individual exam:

Individual examination of each group member takes place after the group examination. Approximately 10 minutes are reserved for answering a question drawn by lot. Focus for the individual exam will be all material of the course including material presented in class by the other groups. 
Course content and structure

The course will cover the following topics: The reading material for the course will include a textbook (Brealey, Meyers, and Marcus) in addition to a collection of articles (Dickson) on selected issues from financial economics with relevance for business practice. The articles will give condensed reviews of developments of theoretical models and ways of thinking in practice within the last decades. They will preponderantly focus on results and applications in practice and be of a non-technical nature. The course will present issues and results from the following areas: Valuation, Equity and Debt Finance, Managing Value, Nature of Financial Markets, Equity and Debt Markets, Portfolio Investments, Risk Management, and Derivatives. Examples from practice to be discussed will among others include LBOs (leveraged buy-outs), IPOs (initial public offerings of equity capital), merger and acquisitions, EVA (economic value added) as measure of performance, new types of securities and securitization, active vs. passive portfolio strategies, to hedge or not to hedge risk, futures & options as risk control instruments. Some examples of mismanagement in business practice will also be discussed.
Teaching methods
The course has 33 class hours consisting of approximately 18h lectures and 15h seminars.
Student workload
Teaching 33 hours
Preparation 147 hours
Exam 26 hours
Expected literature

The course uses the textbooks, Brealey, Myers & Marcus: Fundamentals of Corporate Finance, lastest edition Tim Dickson (ed): Mastering Finance. Pitman Publishing, 1998. Supplemental texts and handouts will be assigned for the lectures.
Last updated on 20-04-2016