FIN 3521 Corporate Finance
FIN 3521 Corporate Finance
Corporate Finance studies how companies are financed through debt and equity. The financing decisions, also known as capital structure, can impact the company’s value and the assessment of new investments. The course addresses these essential questions.
The course bridges theory and practice by solving realistic problems using Excel. Students gain practical experience with this valuable tool while deepening their understanding of the subject matter.
By the end of the course, students shall:
- Appreciate the importance of capital structure: the importance of capital structure for risk; important characteristics of debt and equity; and the decision to pay dividends to the owners.
- The importance of financial markets for the firm's capital structure decisions, including that capital structure does not actually affect the valuation of the firm in perfect markets. The company must also deal with the fact that financial markets are so-called information efficient in equilibrium.
- The importance of taxes for business decisions.
- Companies' risk management and use of available tools, also in an international context.
After completing the course, students are expected to be able to:
- Valuation of the company, both with and without debt, using Excel.
- Practical risk management
- Relevant calculations for mergers and acquisitions (Mergers & Acquisitions)
The course focuses on firms' financing decisions in competitive capital markets. The student must therefore be able to explain the significance of such decisions for the owners, lenders and the economy in general, and in a general sense how companies must be expected to operate in order to contribute positively to social development.
- Capital structure: Advantages and disadvantages of debt financing
- Valuation of companies under different capital structure and rules of taxation
- Dividend policy under different rules for taxation
- The motives behind business mergers (mergers) and acquisitions
- Risk management when using financial derivative contracts
The course consists of 15 two-hour lectures, including assignments. The lectures are supported by videos and other asynchronous material.
During the course, several assignments and tutorials are planned, including 3 tests with follow-up from student assistants.
There is extensive use of Excel in the course. The course studies a case that requires a solution in Excel. Students are therefore strongly encouraged to complete the online course in Excel before this course starts.
Higher Education Entrance Qualification
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
BØK 3423 Finance or equivalent.
| Assessments |
|---|
Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 100 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: FIN35211 Grading scale: ECTS Resit: Examination every semester |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 30 Hour(s) | |
Feedback activities and counselling | 6 Hour(s) | |
Prepare for teaching | 70 Hour(s) | |
Digital resources | 15 Hour(s) | |
Student's own work with learning resources | 29 Hour(s) | |
Individual problem solving | 20 Hour(s) | |
Examination | 30 Hour(s) |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.