English   Danish

2024/2025  KAN-CACAO1008U  Risk Management and Corporate Finance

English Title
Risk Management and Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for cand.merc. and ASC
Course coordinator
  • Katarina Warg - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 30-05-2024

Relevant links
Learning objectives
The student should demonstrate clarity in the understanding and presentation of the following learning objectives:
  • Reflect on the implications of efficient markets and frictions on corporate financing and risk management.
  • Apply capital budgeting techniques and perform valuations.
  • Explain which factors are important for optimal capital structure choice, payout policy, and firm values.
  • Apply financial option techniques for the hedging and risk management of corporate risks.
  • Understand the assumptions and limitations of the various theories and models.
  • Put corporate finance and risk management insights from theories and models into context and perspective.
Course prerequisites
Admission req.
Bachelor level
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 1
Compulsory home assignments
The student must get 1 out of 2 assignments approved to attend the ordinary exam. The assignments will be two sets of exercises to be completed individually.

Students will not have extra opportunities to get the required compulsory activity approved before the ordinary exam. If a student has not received approval for the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam.

If a student, prior to the retake, is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.

The extra assignment is a 10-page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake.
Examination
Risk Management and 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
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.
The re-exam will take the same examination form as the ordinary exam. However, 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, including a second examiner or external examiner. If so, the program office will inform the students taking the make-up examination/re-take examination of any changes to the format.
Course content, structure and pedagogical approach

This course aims to cover important theoretical concepts in corporate finance and risk management, relate theory to empirical evidence, and apply theoretical insights to realistic examples with practical implications for financial professionals.

 

The course builds on the law of one price as the underlying theoretical principle and discusses how financial frictions affect decision-making. It is a fundamental finance course that complements introductory bachelor-level corporate finance courses.
 
The first part of the course provides the students with an understanding of corporate finance. The core elements covered in this part of the course are the valuation of investment projects, corporate finance policies, payout policy, and capital structure choice. The second part of the course investigates corporate risk management and covers financial options, real options, hedging of corporate risk, and international risk management.
Description of the teaching methods
The course contains the following elements:
• Research- and theory-based class lectures.
• Class and homework exercises, preparing the student for the written exam.
• Student involvement through exercise classes and discussions.
Feedback during the teaching period
Students are encouraged to participate in lectures and exercises actively.

Exercise classes will feature many exercises preparing the student for the written exam. Students are expected to have worked with the exercises before classes so that they can ask questions and participate in discussions during classes.

Students will receive written feedback on the mandatory assignments.

Students can use office hours for individual feedback.
Student workload
Lectures 100 hours
Exercises 70 hours
Exam 36 hours
Expected literature

“Corporate Finance” by Jonathan Berk and Peter DeMarzo, 6th edition, Pearson

(We will use the newest edition of the book).


Selected academic articles.
Last updated on 30-05-2024