English   Danish

2017/2018  KAN-CAEFO1077U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Björn Imbierowicz - Department of Finance (FI)
Main academic disciplines
  • Finance
  • Accounting
Last updated on 30-05-2017

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 the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance. At the end of the course, students should be able to:
  • analyze where to invest a firm’s resources.
  • explain the different funding options for a firm and analyze the best funding option in a given context.
  • determine a firm's optimal payout policy.
  • analyze how corporate decisions are influenced by agency problems and explain how agency problems can be countered.
  • understand and explain modern capital structure theory.
  • apply option pricing models to make financial decisions.
  • explain and describe patterns which can be found in M&A's.
Examination
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 Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • USB key for uploading of notes, books and compendiums in a non-executable format (no applications, application fragments, IT tools etc.)
  • Any calculator
  • Books (including translation dictionaries), compendiums and notes in paper format
The student will have access to
  • Access to CBSLearn
  • Access to the personal drive (S-drive) on CBS´ network
  • 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.
Course content and structure

Aim of the course

 

The aim of the course is to provide students with the capacity to understand and apply the theories, models, and techniques that have been developed in corporate finance.

Contents

 

This course introduces students to the fundamentals of Corporate Finance. The first part of the lectures will discuss the building blocks of the modern firm in detail. This includes the institutional background of firms and corporate governance as well as reporting, capital budgeting and cost of capital. After having investigated the main funding sources for firms such as equity and debt, students will learn about the theoretical concepts underlying modern Corporate Finance. Finally, the use of a firm’s proceeds is discussed in more detail followed by valuation, restructuring and M&A of firms.
 
The following topics are treated: corporate governance, corporate reporting, capital  budgeting - project evaluation and cost of capital, long-term financial planning - equity and debt, capital structure theory, payout policy, financial modeling, financial and real options, mergers and acquisitions
Teaching methods
Lectures, cases and exercices.
Feedback during the teaching period
Students are able to obtain feedback via various sources. These are
- personal discussion, e.g. in office hours
- regular short assignments via exercises
- sample questions and solutions related to all topics of the course
Student workload
Preparation 158 hours
Classes and Exercises 44 hours
Exam 4 hours
Expected literature

Preliminary literature.

Berk, J., P. DeMarzo (2013). Corporate Finance, 3rd Edition (Global). Pearson.

ISBN-10: 0-273-79202-4

ISBN-13: 978-0-273-79202-4

Selected journal and newspaper articles
Last updated on 30-05-2017