Course ObjectiveCorporate Finance studies firms as economic decision makers. The goal of
this course is to develop a framework that provides guidance for
investment and financing decisions. This requires not only a fundamental
understanding of most common corporate finance theories (Bridging Theory
and Practice - Knowledge), but also a selection of sensible applications
for them (Academic skills and Research Skills).
Our main decision criterion is based on value creation, which we will
learn to quantify in a flexible valuation model. Practical applications
for the knowledge are widespread and not only of interest to managers,
but part of a toolkit required by everyone who is dealing with financial
markets (Bridging Theory and Practice - Application).
At the end of the course you are able to:
- contrast financing incentives provided by equity and debt financing;
- distinguish between implications derived from various capital
structure theories and put them into perspective;
- extend theories to other decisions, like payout policy/risk
- construct and critically assess valuation models;
- understand how markets for corporate securities work;
- explain the most common corporate governance mechanisms.
Course ContentThis course offers an introduction for students with interests in
financial markets or the intent to pursue a career in finance. We
attempt to provide a sound mix between formal/quantitative analysis and
qualitative discussion. From a modeling perspective, we extend methods
learned in Finance I and II and put them into a corporate setting. When
talking about value-driving factors, we see links to Economics and
Management of Organizations and Marketing. Overall, the content learned
in this course enables students to understand corporate
decisions/valuations by reducing complex problems to its key components.
Tutorials (60 students).
Tutorials (30 students).
Method of AssessmentCase studies/Assignments (group assessment)
Written Exam (individual assessment)
LiteratureJ. Berk en P. DeMarzo (2017), Corporate Finance, Pearson, 4de Global
Additional InformationCompleting this course (or alternatively a corporate finance course in
the other BSc tracks) is a prerequisite for the MSc Finance and a
recommended course for the MSc Business Administration - specialization
Recommended background knowledgeFinance I and II.
Basic Stata skills (including use of do-files)
|Language of Tuition||English|
|Faculty||School of Business and Economics|
|Course Coordinator||dr. J.A.F. Schnitzler|
|Examiner||dr. J.A.F. Schnitzler|
You need to register for this course yourself
Last-minute registration is available for this course.
|Teaching Methods||Seminar, Instruction course, Lecture|
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