Doel vak

Corporate 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 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 derived theories to other corporate decisions like payout
policy and risk management;
- construct and critically assess valuation models;
- categorize institutional features of markets for corporate
securities;
- recall stylized empirical facts of corporate security markets;
- explain the most common corporate governance mechanisms.

Inhoud vak

This course offers a coherent overview for students with interests in
financial markets or the intent to pursue a career in finance. Our
teaching approach includes a sound mix between formal/quantitative
analysis and qualitative discussion. From a modeling perspective, we
extend the methods learned in Finance I and II (or economic courses) and
put them into a corporate setting. When talking about value-driving
factors, we see close links to Economics and Management of Organizations
and Marketing. Overall, the content learned in this course enables
students to understand corporate decisions/valuations by focusing on the
key aspects and connecting them to applicable theories.

Onderwijsvorm

Lectures.
Tutorials (60 students).
Tutorials (30 students).

Toetsvorm

Case studies/Assignments (group assessment)
Written Exam (individual assessment)

Literatuur

J. Berk en P. DeMarzo (2017), Corporate Finance, Pearson, 4de Global
Edition.

Overige informatie

Completing 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
Financial Management.

Aanbevolen voorkennis

Finance I and II.