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2022/2023  BA-BBLCO1221U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Semester
Start time of the course Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc and MSc in Business, Language and Culture, BSc
Course coordinator
  • Ulf Nielsson - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 28-06-2022

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
Examination
The exam in the subject consists of two parts:
Corporate Finance 4-hour written exam:
Sub exam weight70%
Examination formWritten sit-in exam on CBS' computers
Individual or group examIndividual exam
Assignment typeWritten assignment
Duration4 hours
Grading scale7-point grading scale
Examiner(s)One internal examiner
Exam periodSummer
AidsLimited 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
  • basic 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.
Corporate Finance home assignment:
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 periodSpring
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

A paper will be set by the teacher which the students have to prepare individually and submit electronically. The same assignment cannot be handed in for the ordinary exam and the re-exam.

As stated in the programme regulations, both parts of the exam must be passed with a minimum grade of 02.
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 addresses the 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,
  • 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. This includes sustainable financial management that addresses financial frictions w.r.t. both funding and investment decisions. The students will be presented with concepts and theory of corporate finance during lectures, supplemented by exercises 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 14 hours
Examination 52 hours
Preparation 98 hours
Total 206 hours
Further Information

From Spring 2023 this course will run with internal examination only.
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 28-06-2022