30366 - FINANCE (MODULE II) - CORPORATE FINANCE
Department of Finance
Course taught in English
Course Director:
HANNES WAGNER
HANNES WAGNER
Prerequisites
The course is quantitative. To feel comfortable during the course, you should be familiar with basics in financial calculus (including time value of money, annuities and perpetuities), statistics (including probabilities, variances/covariances and ordinary least squares) and accounting (being able to read information contained in balance sheets, income statements, and cash flow statements).
Mission & Content Summary
MISSION
This course serves as an introduction to modern corporate finance. Corporate finance is a set of principles that govern how businesses run. It is a study of how businesses should make financial decisions - ranging from investment choices to assessing the right mix of debt and equity. The course explores both investing and financing decisions, focusing on their role in the creation of shareholder value.
CONTENT SUMMARY
The course covers four main parts:
- The value of a firm - financial instruments, valuation concepts and decision rules.
- Risk and return - theory, empirical evidence and applications to capital budgeting.
- Financing decisions and market efficiency.
- Payout policy, capital structure and valuation.
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Recognize, explain, and reproduce core corporate finance tools and techniques, including applications in international contexts.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Apply and interpret core corporate finance tools and techniques.
- Apply and evaluate capital budgeting methods.
- Analyze and assess corporate financial decisions, such as capital structure and corporate payout decisions.
Teaching methods
- Face-to-face lectures
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
- Individual assignments
- Group assignments
DETAILS
- Excercises: students work on exercises in class and as take-homes.
- Case studies: several case studies are designed to give students a sense of solving allegedly real problems facing a firm.
- Individual assignments: students work through roughly one dozen individual graded assignments throughout the course, these serve primarily to help students synthesize the material.
- Group assignments: groups of students work on graded group assignments (cases).
Assessment methods
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ATTENDING AND NOT ATTENDING STUDENTS
- Course assessment consists of a written exam (50-100%), case studies (0-20%) take-home assignments (0-30%). The cases and take-homes have the main goal of helping to master the course material. They also offer opportunities to collect extra points for the total course grade.
- Course assessment is identical for attending and non-attending students. To make this as easy as possible, all non-exam grade components are handed out online and handed in online.
- Results of cases and take-homes expire after the first retake of the final exam. The specific dates are announced in class.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
- FAQ: An up-to-date guide to Frequently Asked Questions about the course (on Bboard).
- Textbook: R. BREALEY, S. MYERS, F. ALLEN (BMA), Principles of Corporate Finance, McGraw Hill, 12th edition. ISBN13: 9781259253331.
- Course note packet: there is a course pack of class lecture notes (on Bboard).
- Cases: a set of cases we work through in class (on Bboard).
- Pre-readings: please see the course notes for some basic pre-reading to be done before the course formally begins (on Bboard).
Last change 20/06/2018 19:47