Advanced Corporate Finance

2018-2019

Course Objective

This course is an advanced course in Corporate Finance. This course has
three main learning objectives.

1. Extending academic/ professional knowledge in Corporate Finance:
learning about academic concepts in Corporate Finance (Technical
knowledge).
2. Understanding the origin and empirical strength of academic concepts
in Corporate Finance: (Critical skills; Conceptual reasoning).
3. Applying academic concepts in Corporate Finance in real life cases:
confrontation of academic concepts in Corporate Finance with real life
situations (Problem-solving skills; Conceptual reasoning).

After following this course, you:
- Understand Corporate Finance academic concepts, including their
strengths and limitations in application in Corporate Finance practice.
- Are able to apply these basic concepts in real life cases
(professional practice), i.e. being able to choose between various
concepts.

More specific learning objectives for the working classes and case
solving are:
- Ability to analyze and solve real life cases in Corporate Finance;
- Being able to report on a case in Corporate Finance;

Course Content

The Corporate Finance discipline is about matching companies’ assets
with investor’s preferences. It has both a micro perspective on CFO
decision making and a macro perspective on the functioning of Corporate
Financial Markets. It applies to CFOs at non-financial companies and
financial institutions and to policy makers.

This course gives an overview of academic knowledge in corporate finance
relevant for corporate finance professionals. The curriculum of this
course keeps track with the current state of the art in professional
practice.

Main topics in this course are:
- leverage decision;
- dividend decision;
- relevanve of risk management in corporate finance;
- corporate debt market;
- structured corporate finance (project finance, asset securitization,
LBO);
- credit risk measurement (including rating agencies) and credit risk
pricing;
- equity risk measurement and pricing;
- valuation of equity and debt in distress situations and convertible
debt valuation;

Teaching Methods

Lectures and working classes

Method of Assessment

TBA

Entry Requirements

This advanced course is elaborating on classical text books like
Corporate Finance (Berk and DeMarzo) and Principles of Corporate Finance
(Brealey, Myers and Allen).
Students are expected to be familiar with chapters in these books on
capital structure, payout policy, cost of capital, CAPM, capital
budgeting, time value of money, option valuation, working capital
management. These chapters mark the entry knowledge level of this
course. Students not very familiar with these books are advised to have
a look at these books or even buy it for (required) background knowledge
needed in this course.

Literature

TBA

General Information

Course Code E_FIN_ACF
Credits 6 EC
Period P1
Course Level 400
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator prof. dr. ir. H.A. Rijken
Examiner prof. dr. ir. H.A. Rijken
Teaching Staff prof. dr. ir. H.A. Rijken

Practical Information

You need to register for this course yourself

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: