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2019/2020  MA-MMBAO1081U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 4 ECTS
Type Mandatory
Level Part Time Master
Duration One Semester
Start time of the course Autumn, Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Master of Business Administration
Course coordinator
  • Jesper Rangvid - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 28-06-2019

Relevant links
Learning objectives
  • Combine and apply insight from the syllabus to solve corporate finance problems through accurate and correct calculations
  • Show and explain all relevant calculations to solve a given problem
  • State the assumptions behind the theories / methods / models in the syllabus
  • Independently combine and logically structure the corporate finance vocabulary / theories / methods / models / regulatory / institutional / practical knowledge, and empirical evidence to solve corporate finance problems
Examination
Corporate Finance:
Exam ECTS 4
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 10 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer and Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
A written case assignment based on a case or a subject chosen by the teacher. The assignment must be formulated and given to the students at least nine days prior to the expiration of the deadline. It should be 10 pages long and submitted to CBSLearn. The exam is held internally, and the assignment is put forward and assessed by the relevant faculty.

Alternative examination format: The make-up/re-examination will be held as an oral examination 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.
Description of the exam procedure

The exam in Corporate Finance at CBS gives the student two options

 

Option 1: Written company assignment (max 10 CBS standard pages).

Option 1 is to analyze a corporate finance company specific problem of the student’s own choice. The report must be targeted to an academic, but emphasis should be put on making it decision-oriented. If the student chooses this option the student needs to decide on title, problem statement, delimitation, methodology, structure, data etc. without guidance from the teacher. In option 1 the student has vast opportunities for deciding what to write about and how to structure the problem at hand. However, this also means that it is up to the student to get a good structure, get the relevant data and use the tools from the course to analyze a relevant problem.The written company assignment must be uploaded to Learn (Digital Exam) in one single PDF file (only acceptable format, i.e. not e.g. Word, Excel etc.) before Monday, November 4th, 2019 at 12 noon.

 

Option 2: Individual oral exam, 20 minutes plus 20 minutes preparation (including assessment), closed book with limited aids (allowed: syllabus, notes on paper, handheld calculator – not allowed: phone, tablet, pc or communication of any kind). One internal examiner and a second internal examiner. If the student chooses option 2 the teacher sets up some questions and the exam is answering the questions using the insight from the course with the limited aids of syllabus, notes on paper and handheld calculator, i.e. no phone, tablet, pc or communication of any kind.
Exam date and time: Monday, November 4th, 2019..

Sign up for option 2 exam is Wednesday, October 23rd, 2019 at 12 noon at the latest to the program manager.
Course content, structure and pedagogical approach

Corporate finance plays a fundamental role in the strategic running of a company. This course teaches you the relevant models and analytical framework to use when faced with economic decisions in corporations. First, we focus on investment decisions under certainty. Then, we shift focus onto the relationship between risk and expected return. The acquired insight is combined to analyze investment decisions under uncertainty. Thereafter, we focus on the financing decision, starting with an overview of the efficient market hypothesis. We move onto understanding the importance of a firm’s payout policy, why firms choose a specific capital structure, and how to estimate the cost of capital. M&A and corporate restructuring finishes the course.

 

During this course, you will learn corporate finance by a mixture of hands-on learning incorporating relevant corporate finance problems, case based learning, industry speakers, and using financial media articles.

 

On completion of the course you will understand the relationship between risk and expected return, know how to value a partly debt financed investment project or firm by estimating expected cash flows and cost of capital, have a clear understanding of when payout policy and capital structure matters, and understand M&A and corporate restructurings.

 

Alignment of expectations:

  • Teacher and students are well prepared for each session.
  • Teacher and students are on time and on their seats when class starts.
Description of the teaching methods
The course is structured in 8 sessions, where each session is focusing on a specific topic. The course has diverse teaching methods using lectures, cases, readings and discussions. The class meetings are interactive and require ongoing engagement of the students.
Feedback during the teaching period
Feedback is given to the student together with the grade when written and oral exams have been evaluated.

The evaluation
At the evaluation unit at CBS’s Economic & Analysis department we ask you to evaluate the overall course. In other words if there has been exercise classes and lectures the evaluation should include both. We evaluate every course and faculty to secure and strengthen the professional level of the offered course.
Student workload
Lectures 32 hours
Preparation + Exam 78 hours
Expected literature

Syllabus will be available, well in time, before the first session.
Last updated on 28-06-2019