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2023/2024 BA-BIBAO3021U Principles of Corporate Finance
| English Title | |
| Principles of Corporate Finance |
Course information |
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| Language | English |
| Course ECTS | 7.5 ECTS |
| Type | Mandatory (also offered as elective) |
| 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 in Business, Asian Language and
Culture
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| Teaching methods | |
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| Last updated on 23-06-2023 | |
Relevant links |
| Learning objectives | ||||||||||||||||||||||
At the end of the course the students should be
able to:
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| Examination | ||||||||||||||||||||||
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| Course content, structure and pedagogical approach | ||||||||||||||||||||||
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This course is an overview of the principles of corporate finance and is designed for undergraduate students who have no prior knowledge of corporate finance. We place importance on techniques related to investment decisions and financial decisions made by companies. Financial managers in corporations work with other managers to identify investment opportunities, analyze and value the opportunities, and to decide whether and how much to invest, as well as decide how to raise the money to finance the corporation’s investments.
Therefore, we start with an introduction to what corporate finance is and describe the role of a corporation’s financial manager. We then proceed with how to measure corporate performance (value-added, efficiency, profitability, etc), since the main goal of corporations is maximizing the current market value.
Since companies invest in a lot of things such as tangible or intangible assets, the decision on capital outlays is among the most significant a firm will have to make. In introducing decision-making on capital expenditure, first, the students will be exposed to “time value of money” calculations and then proceed to the fundamentals of valuation of bonds and stocks, emphasizing present value techniques. These techniques will be also useful during capital budgeting decisions, which involve comparing the different investment criteria in the presence of capital shortage. After careful grounding in valuation practice and theory, the concepts of the cost of capital and capital structure will be examined, covering risk-return analysis in capital budgeting. In the end, the students will get an additional overview of more advanced financial instruments such as options. |
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| Description of the teaching methods | ||||||||||||||||||||||
| A mix of lectures, exercises, and casework is held both online and in the classroom. Cases, when necessary, will be made available to students. The course is designed as a blended learning course. With this, some lectures and exercises will be online and others will be on campus. Students will furthermore have access to additional digital learning elements such as quizzes, discussion forums, or podcasts if applicable. | ||||||||||||||||||||||
| Feedback during the teaching period | ||||||||||||||||||||||
| Students receive continuous feedback in the
exercise sessions where they are asked to apply concepts of
corporate finance. During class, we discuss concepts, and students
are actively involved in the discussion giving them the opportunity
to get direct feedback on their way of thinking about corporate
finance theories and concepts.
Throughout the application of quizzes and discussion forums in canvas, the students get after making a quiz or contributing to a discussion direct feedback from the teacher or the system. In the case of pre-recorded videos using the panopto software, we incorporate related questions with direct feedback after the answer submission. The exercises, quizzes, and discussions are linked to some of the learning objectives of this course, which means that feedback activities can help you familiarize yourself with the assessment method of the course as well as provide you with a clear indication of the standards expected from your work. Further feedback by teachers is offered in response to questions by individual students or groups. Students are at all times able to reach the teacher by email to ask questions or book meetings if needed. |
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| Further Information | ||||||||||||||||||||||
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The course is designed for undergraduate students who have no prior knowledge of corporate finance. Therefore, the course is especially integrated with the IBA courses in Microeconomics and Accounting, as well as the other courses of IBA. |
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| Expected literature | ||||||||||||||||||||||
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Main Text Book
Please note: these reading materials are only tentative and changes may occur. Final literature lists will be uploaded on CANVAS before the course begins. |
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