BE-410 Corporate Finance (Autumn 2020)
- ECTS Credits:
- 7.5
- Responsible department:
- School of Business and Law
- Course Leaders:
-
- Steen Koekebakker
- Stephen Zamore
- Lecture Semester:
- Autumn
- Teaching language:
- English.
- Duration:
- ½ year
Table of contents
The course is connected to the following study programs
- Master's Programme in Shift Entrepreneurship and Business
- Master's Programme in Business Administration
Teaching language
Recommended previous knowledge
Learning outcomes
- be able to demonstrate how the no-arbitrage principle governs prices in financial markets
- be able to discuss how information from financial markets may be used to value real assets
- be able to demonstrate how taxes influence firms´ financing and payout choices
- be able to identify how conflicts between shareholders and debt holders arise and how they can be minimized
- have insight into how managerial incentives affect financial decisions
- have insight into financial decisions affect stock prices
- be able to recognize how taxes, operation synergies, and management incentive conflicts provide motives for mergers and acquisitions
Contents
This course presents the financial theory mainstream theory on basic asset valuation, risk and return, capital structure, financial and real options, long-term financing and special topics like mergers and acquisitions. The course represents a modern and international approach to corporate finance. The underlying philosophy of the course is that finance is not a set of topics or a set of formulas. Rather, it is the consistent application of a few sensible rules and themes. The course develops a firm knowledge of the theoretical foundations of corporate finance but does not offer in-depth coverage of each specific topic.
The course first recapitulates fundamentals of capital budgeting, bond valuation, and stock valuation. Next, capital markets and the pricing of risk are discussed, including optimal portfolio choice, the capital asset pricing model and alternative models of systematic risk. With this theoretical basis, the course sets out to analyze classic corporate finance topics like capital structure in a perfect market, debt and taxes, financial distress, managerial incentives, information, and payout policy. Finally, capital budgeting with leverage, options and corporate finance, initial public offerings, different types of debt, and the market for corporate control are analyzed.
Teaching and learning methods
Examination requirements
Examinations
4-hour written examination with letter grades.
Due to grade requirements for state authorised public accountants, a regular examination will be held both autumn and spring.