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2021/2022  BA-BDMAO2002U  Corporate Finance

English Title
Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
BSc in Digital Management
Course coordinator
  • Ulf Nielsson - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 19-12-2021

Relevant links

Learning objectives
  • ­Identify, explain, discuss and apply the core concepts, models and methods
  • ­Calculate, interpret and compare financial statistics, prices, returns and costs
  • Elaborate, present and discuss solutions for financial decision problems
Course prerequisites
Students are not required to have any prior knowledge within finance, but should have an appropriate background in mathematics and statistics. This includes statistical concepts such as covariance, correlation coefficient, expected value and variance.
The exam in the subject consists of two parts:
Midterm - Corporate Finance:
Sub exam weight30%
Examination formHome assignment - written product
Individual or group examIndividual exam
Size of written productMax. 10 pages
Assignment typeWritten assignment
Duration48 hours to prepare
Grading scale7-point grading scale
Examiner(s)One internal examiner
Exam periodAutumn
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

All the learning objectives are relevant for this partial exam.

Final exam - Corporate Finance:
Sub exam weight70%
Examination formHome assignment - written product
Individual or group examIndividual exam
Size of written productPlease see text below
Prøven varer 2 timer.
Assignment typeWritten assignment
DurationWritten product to be submitted on specified date and time.
Grading scale7-point grading scale
Examiner(s)One internal examiner
Exam periodWinter
Make-up exam/re-exam
Same examination form as the ordinary exam
Hvis antallet af eksaminander til omprøven tilsiger, at prøven mest hensigtsmæssigt kan afholdes som mundtlig prøve, vil sekretariatet give meddelelse om at omprøven afholdes som mundtlig prøve i stedet. Der vil i så fald være bi-eksaminator, medmindre prøven er ekstern.
Description of the exam procedure

The minimum grade is 02 to pass the course. The course grade is calculated as a weighted average of the two partial exams, i.e. 30%*Midterm+70%*Final, which must give a minimum grade of 02 to pass. Additionally, neither of the two partial examinations can be graded lower than ‘00’ to pass the course. A partial examination cannot be re-taken if the weighted average of the two examinations is 02 or above.

All the learning objectives are relevant for this partial exam.

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, and 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 analyzed 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
  • International financial management and capital budgeting
  • Financial and real options
  • Risk management
Description of the teaching methods
The participants are introduced to methodological and practical concepts in modern corporate finance using various pedagogical methods, during both lectures and exercise classes. The course design is aimed at reflecting finance in today’s digital world, for example by supplementary readings and discussions of practical applications of the course material and real-life dilemmas faced by modern corporations. The students will be presented with concepts and theory of corporate finance during lectures, supplemented by exercise classes reserved for problem solving and developing students’ analytical skills. Further exercises and cases will be home-work assignments during the course. Overall this should provide participants with experience in implementing financial concepts and providing concrete financial recommendations in modern corporations.
Feedback during the teaching period
Student feedback will occur regularly throughout the course. A midterm assignment will be handed out during the course, which will be followed by written and oral feedback that is designed to help students evaluate their own understanding of the material and the level of performance that is expected of them. Feedback will also occur via other aspects of the course, such as 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 moreover strive to be readily available for a one-to-one dialogue in both lecture breaks and following each lecture session, in order to provide individual student feedback.“
Student workload
Lectures 42 hours
Exercises 21 hours
Examination 48 hours
Preparation 95 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).

Last updated on 19-12-2021