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2017/2018  BA-BHAAI1028U  Undergraduate Corporate Finance

English Title
Undergraduate Corporate Finance

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, China, 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.msc@cbs.dk
Main academic disciplines
  • Finance
  • Accounting
Last updated on 25/04/2018

Relevant links

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. By the end of the course, students will be able
  • How to value projects, stocks and how to think critically
  • How to make investment decisions under uncertain scenarios
  • How to make Financing decisions and optimize capital structure
Course prerequisites
Basic Accounting concepts, familiarity with MS Excel
Examination
Undergraduate 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, Ordinary exam: 31 July - 3 August 2018

Retake exam: September - October 2018

3rd attempt (2nd retake) exam: November - December 2018

Exam schedule is available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams.
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.
4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): home project assignment, max. 15 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

There will also be a preliminary assignment that students need to complete prior to the commencement of the course. Scope of this assignment is to give student some background knowledge and be better prepared on day 1 of the course. Details of this assignment will be provided later on. 

 

Preliminary assignment:There will also be a preliminary assignment that students need to complete prior to the commencement of the course. Scope of this assignment is to give student some background knowledge and be better prepared on day 1 of the course. Details of this assignment will be provided later on. 

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 and Investment Decision. 

Class 6: Scenario analysis, decision trees and Real Option

Feedback activity

Class 7: Risk,Returns and Capital Asset Pricing Model I

Class 8: Capital Asset Pricing Model II: WACC and Valuation

Class 9: Capital Structure, Leverage, Dividend

Class 10: Cash Flow to Equity, to Firm, APV and Valuation

Class 11: Options and Other Derivatives Introduction

Teaching methods
The course will include lectures and class discussions. There will be case discussions to apply theory to real-life situations.
Feedback during the teaching period
Perform a budgeting analysis, using the concepts discussed in the first half of the course, including DCF, IRR methodologies.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 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.

 

Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams.

 

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end February 2018 at the latest.

Expected literature

Mandatory readings:

 

Corporate Finance: Principles and Applications 
5th edition
Ross, Westerfield, Jaffe, and Jordan

Last updated on 25/04/2018