| Learning objectives |
To achieve the grade 12, students should meet the
following learning objectives with no or only minor mistakes or
errors: At the end of the course the students should be able to:
- Define and discuss key concepts from theories and models
introduced and discussed in the course.
- Apply the correct financial techniques to a given issue.
- Calculate and perform the analysis from the perspective of a
chief financial officer in decision-making.
- Interpret the results of the analysis with respect to the
efficiency of decision making.
|
| Examination |
|
Principles of
Corporate Finance:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| 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 |
| Aids |
Limited aids, see the list below:
The student is allowed to bring - Non-programmable, financial calculators: HP10bll+ or Texas BA
II Plus
- Language dictionaries in paper format
The student will have access to - Advanced IT application package
At all written
sit-in exams the student has access to the basic IT application
package (Microsoft Office (minus Excel), digital pen and paper,
7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows
Media Player). PLEASE NOTE: Students are not allowed to communicate
with others during the exam :
Read more about exam aids and IT application
packages here |
| 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.
|
Description of the exam
procedure
No other written or technical aids are allowed at the exam,
except from certain calculators specified above and dictionaries
(financial dictionaries are not allowed). Cf. The Regulations for
written tests at CBS.
|
|
| Course content and structure |
|
This course is an overview of the principles of corporate
finance and is designed for undergraduate students who have no
prior knowledge of corporate finance. Importance is placed on
techniques related to investment decisions and financial decisions
made by companies. Financial managers in corporations work with
other managers to identify investment opportunities, to analyze and
value the opportunities and to decide whether and how much to
invest, as well as decide how to raise the money to finance
corporation’s investments.
Therefore we start with an introduction of what a corporation is,
and describe the role of a corporation’s financial manager. We then
proceed with how to measure corporate performance (value added,
efficiency, profitability etc), since the main goal of corporations
is maximizing the current market value.
Since companies invest in a lot of things such as tangible or
intangible assets, the decision on capital outlays is among the
most significant a firm will have to make. In introducing decision
making on capital expenditure, first the students will be exposed
to “time value of money” calculations and then proceed to the
fundamentals of valuation of bonds and stocks, emphasizing present
value techniques. These techniques will be also useful during
capital budgeting decisions, which involve comparing the different
investment criteria in the presence of capital shortage. After
careful grounding in valuation practice and theory, the concepts of
the cost of capital and capital structure will be examined,
covering risk-return analysis in capital budgeting.
|
| Teaching methods |
| Mix of lectures, exercises and casework. Cases,
when necessary, will be made available to students. |
| Feedback during the teaching period |
Students can receive feedback during office hours
and tutorial classes.
Feedback is further offered in response to your questions and work
whenever feasible although please appreciate that there are often
time constraints. We also encourage you to ask questions or make
comments in class and form self-study groups to secure peer
feedback on your work. |
| Student workload |
| Teaching |
36 hours |
| Preparation |
166 hours |
| Examination |
4 hours |
|
| Further Information |
|
The course is designed for undergraduate students who have
no prior knowledge of corporate finance. Therefore, the course
is especially integrated with the ASP courses in Microeconomics and
Accounting, as well as the other courses at the 1st, 2nd and 3rd
year.
|
| Expected literature |
|
Main Text Book
- Richard A. Brealey, Steward C. Myers, and Alan J. Marcus.
Fundamentals of Corporate Finance. (latest edition) McGraw
Hill
Please note: these reading materials are only tentative and
changes may occur. Final literature lists will be uploaded on LEARN
before the course begins.
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