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2020/2021  BA-BINBO1136U  Corporate Finance

English Title
Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Spring, Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
  • Ulf Nielsson - Department of Finance (FI)
Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 14-02-2020

Relevant links

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 Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Spring and Summer
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
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Access to Canvas
  • Access to the personal drive (S-drive) on CBS´ network
  • Advanced IT application package
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, 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.

Last updated on 14-02-2020