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2023/2024  KAN-COECO1060U  Corporate Finance

English Title
Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 50
Study board
Study Board for MSc in Advanced Economics and Finance
Course coordinator
  • Kasper Meisner Nielsen - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Blended learning
Last updated on 09-02-2023

Relevant links
Learning objectives
  • 1) Apply capital budgeting techniques and perform valuations
  • 2) Explain when and how taxes, agency problems, and asymmetric information affect capital structure, payout policy, and firm values
  • 3) Explain the possible implications of frictions on further topics including financing choices, investment decisions, executive compensation, and risk management
  • 4) Put corporate finance insights from research papers into context and perspective
Course prerequisites
This is a mandatory course for the MSc in Advanced Economics and Finance. It is assumed that students have knowledge similar to the entry requirements for this program. The course has 42 confrontation hours and there is a high level of interaction between lecturer and students, and in general a high work load.

To sign up send a 1-page motivational letter, a 1-page CV, and a grade transcript to ily.stu@cbs.dk before the registration deadline for elective courses. You may find the registration deadlines on my.cbs.dk ( https:/​/​studentcbs.sharepoint.com/​graduate/​pages/​registration-for-electives.aspx ).

Please also remember to sign up through the online registration.
Examination
The exam in the subject consists of two parts:
Corporate Finance - midterm:
Sub exam weight30%
Examination formWritten sit-in exam on CBS' computers
Individual or group examIndividual exam
Assignment typeWritten assignment
Duration2 hours
Grading scale7-point grading scale
Examiner(s)One internal examiner
Exam periodAutumn
AidsLimited aids, see the list below:
The student is allowed to bring
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
  • Language dictionaries in paper format
The student will have access to
  • 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.
Description of the exam procedure

The midterm is based on the first part of the course. Relevant learning objectives for the midterm are 1) and 2). 

Corporate Finance - final:
Sub exam weight70%
Examination formOral exam
Individual or group examIndividual exam
Duration20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation timeNo preparation
Grading scale7-point grading scale
Examiner(s)Internal examiner and external examiner
Exam periodWinter
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

The student is randomly assigned a question. The student may be asked, for example, to present the main ideas in a relevant paper from the curriculum. The examination first focuses on the specific question that the student draws. The student is also expected to relate answers to other material from the curriculum. The examination proceeds with further questions, which may be related or unrelated to the initial question drawn.

Relevant learning objectives for the final exam are 2), 3) and 4).
Course content, structure and pedagogical approach

The first part of the course introduces students to corporate finance. The second part of the course provides students with a research-based knowledge and understanding of core topics in corporate finance focusing on the implications of asymmetric information and agency conflicts. The course covers corporate valuation, capital structure, payout policy, and corporate governance. It is a fundamental finance course and complements the course on asset pricing theory.
Description of the teaching methods
The format of the course is based on the following elements:
• Class lectures
• Possibility of student presentations of relevant journal articles
• Case analysis which is participation oriented
• Class and home exercises
Feedback during the teaching period
The students will receive feedback in relation to the midterm exam and in connection with student presentations. In addition, the students can receive more individual feedback in office hours.
Student workload
Teaching 42 hours
Preparation 105 hours
Examination (including preparation) 59 hours
Expected literature

“Corporate Finance” by Jonathan Berk and Peter DeMarzo, 5th edition, Pearson.
Last updated on 09-02-2023