Advanced Corporate Financial Management

2019-2020

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 (Bridging Theory
and Practice - Knowledge).
2. Understanding the origin and empirical strength of academic concepts
in Corporate Finance: (Bridging Theory and Practice - Knowledge).
3. Applying academic concepts in Corporate Finance in real life cases:
confrontation of academic concepts in Corporate Finance with real life
situations (Bridging Theory and Practice - Application).

Additional learning objectives for the working classes and case solving
are:
- Ability to report in a briefly and concise way (Professional / Social
Skills)
- Awareness of your skills in bridging theory and practice and case
solving skills (Self awareness Skills)

Course Content

This course is an advanced course in Corporate Finance.

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.

This course gives an overview of academic knowledge in corporate finance
relevant for corporate finance professionals.

As this course is an advanced course most relevant theories will be
briefly reviewed. Specific attention is given to the application of
corporate finance theories in practice: do assumptions hold? Which
theory fits best in which specific circumstances?

This course requires basic knowledge from standard textbooks on
Corporate Finance, like the book written by Brealey, Myers and Allen or
the book authored by Berk and DeMarzo.

Main topics in this advanced course are:
- leverage decision;
- dividend decision;
- relevance 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 tutorials.

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_BA_ACFM
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

Practical Information

You need to register for this course yourself

Teaching Methods Seminar, Lecture
Target audiences

This course is also available as: