| Learning objectives |
The student is expected to be able to
- Identify, explain and apply the core concepts, models and
methods
- Calculate, interpret and compare financial statistics, prices,
returns and costs
- Elaborate and present solutions for financial decision
problems
|
| Examination |
|
Corporate
Finance:
|
| Exam
ECTS |
7,5 |
| Examination form |
Home assignment - written product |
| Individual or group exam |
Individual exam |
| Size of written product |
Max. 10 pages |
| Assignment type |
Written assignment |
| Duration |
Written product to be submitted on specified date
and time. |
| Grading scale |
7-point grading scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Spring |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
|
Description of the exam
procedure
|
|
| Course content, structure and pedagogical
approach |
|
This is an introductory course in finance focusing on corporate
applications in the international environment. It covers the basic
theories of interest rates, valuation of streams of cash flows,
pricing of risk, and it draws practical implications for capital
structure, project valuation, financing, and risk management.
More specifically, the course contains a basic introduction to
topics such as:
- The main characteristics of corporations
- The relationship between accounting information and the
information analysed in corporate finance
- Interest rates and the time value of money
- The valuation of bonds and stocks
- The investment decision
- The financing decision including capital structure theory and
the cost of capital
- Payout policy
- Mergers and acquisitions
- International financial mangement and capital budgeting
- Financial and real options
- Risk management
Thereby, the course reflects the BSc IB program learning goals
in the following way:
Practical Application of Theory
The course includes many exercises and cases illustrating the
practical application of theory. In particular, this is achieved
both through lectures (illustrating practical applications) and
assigned readings from The Economist.
Relation to a Business or an Institutional Setting
Several aspects of different types of financial markets are
examined including public versus privately owned companies and
various types of providers of capital (investors).
Relation to International Business or Economics
The international perspective is taken in connection with many of
the topics covered during the course especially including mergers
and acquisitions, financial management and capital budgeting, and
risk management. Several examples are looking at multinational
firms.
Research Based Teaching
The curriculum includes articles that summarize several research
papers and ties such research to the practical use of the theoretic
methodologies introduced in the course. Furthermore, evidence from
several empirical studies is discussed during the
course.
|
| Description of the teaching methods |
| The class time will be devoted to a combination
of lectures, discussions of different exercises and minor cases.
Exercises and cases will be home-work assignments during the
course. They will not be graded but discussed in class. The
material is large and well explained in the book. Therefore,
students are expected to study parts of the material on their own
and, as a minimum, to have read through the material and tried to
solve exercises/cases assigned as home-work in advance. |
| Feedback during the teaching period |
| Student feedback will occur regularly throughout
the course, e.g. via exercise classes, office hours and in-class
problem solving. Students are encouraged to make use of those to
enhance their learning experience, of course in addition to regular
participation and two-way communication in lectures. The lecturer
will also strive to be readily available for a one-to-one dialogue
in both lecture breaks and following each lecture
session. |
| Student workload |
| Lecture hours |
42 hours |
| Exercixe Classes |
18 hours |
| Examination |
4 hours |
| Preparation |
142 hours |
|
| Expected literature |
|
Brealey, Myers and Marcus, Fundamentals of Corporate
Finance, newest edition available in adequate advance of the
course start, (Mc Graw Hill International Edition).
Other readings will be made available on Learn. These readings will
at least include the articles from The Economist:
Please note, minor changes might occur. The teacher will
upload the final reading list to Learn two weeks before the course
starts.
|
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