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2023/2024  KAN-CGMAO1001U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for cand.merc. and GMA (GMA)
Course coordinator
  • Peter Brok - Department of Finance (FI)
Main academic disciplines
  • Finance
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 31-03-2023

Relevant links
Learning objectives
  • The student should be able to explain selected theories, assess which theory should be applied, and discuss the strength and weakness in those theories.
  • The student should be able to apply selected theories to practical situations involving corporate finance problems.
  • The student should be able to reflect on the impact of changing environments on those theories.
  • The student should be able to solve practical corporate finance problems via correct calculations, generalise, and adapt selected theories to new settings.
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 Winter
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
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The aim of the course is to provide students with the capacity to understand, apply, and adapt the theories, models, and techniques that have been developed in corporate finance, enabling informed decision making.

Contents

 

This course explores the use of corporate financial models for evaluating business decisions. A collection of theoretical models is discussed. Students not only need to understand the strengths and weakness of these models, but also need to assess which model best fits practical situations. Students are expected to adequately apply the models to these situations.

 

Business environments are constantly experiencing changes in regulatory and market environments. Students are expected to reflect on the impact of these changing business environments. Moreover, this course will provide students with the skills to adapt and generalize the selected models to apply them to a multitude of complex settings. Students are expected to adapt theories to constraints, whether they be related to available capital, labour, office space, or environmental restrictions.

 

The following topics are treated:

  • Investment decision rules
  • Corporate governance and agency problems
  • Corporate reporting
  • Capital budgeting – project evaluation and cost of capital
  • Long-term financial planning – equity and debt
  • Capital structure theory
  • Pay-out policy
  • Financial and real options
  • Mergers and acquisitions
  • Risk management
  • Business valuation
Description of the teaching methods
Lectures, videos, cases and exercices.
Feedback during the teaching period
There will be weekly online quizzes on which the students will receive feedback both online and in class.
Student workload
Preparation 158 hours
Classes and Exercises 44 hours
Exam 4 hours
Expected literature

Preliminary literature.

Berk, J., P. DeMarzo (2019). Corporate Finance, 5th Edition (Global). Pearson.

ISBN-10: 1-292-30415-4

ISBN-13: 978-1-292-30415-1


Graham, J. R. (2022). Presidential address: Corporate finance and reality. The Journal of Finance.

 

Selected journal and newspaper articles
Last updated on 31-03-2023