GRA 6541 Advanced Corporate Finance
GRA 6541 Advanced Corporate Finance
This course deals with contemporary issues in corporate finance and refines tools to evaluate investments, capital structure, and corporate securities. The course explores how corporate finance decisions are affected when the classic Modigliani-Miller capital structure irrelevance-assumptions are relaxed, focusing on the consequences of taxes, bankruptcy, information asymmetries, and agency conflicts, among others. In this context, it discusses the important role and the various features of firm debt financing. The course introduces students to modern corporate financial theories as well as empirical patterns and studies.
- Develop an understanding of different economic mechanisms that drive firms' capital structure and financing choices
- Understand how firm value may be impacted by financing choices
- Ability to identify pros and cons (trade-offs) associates with different financing choices
- Ability to interpret empirical evidence in the light of corporate finance theory
- Ability to analyse and discuss in a structured and "precise" manner
- Critical reflection and ethical awareness in connection with topics in corporate finance
- Structuring and articulating economic arguments in writing through case analysis
The exact course content may vary from year to year, but will include topics such as:
- Capital Structure Decisions
- Taxes
- Bankruptcy and Corporate Restructuring
- Information Asymmetry and Agency Costs
- Debt Financing
- Valuation Techniques
- Option Valuation in Corporate Finance
- Liquidity
- Merger and Acquisitions
- Dividend Policy and Share Repurchases
- Initial Public Offerings
- Private Equity and Venture Capital
- Behavioral Corporate Finance
The learning will take place through lectures, discussions, and (group) assignments. Students are expected to prepare for the lecture by reading assigned papers and participate actively in class. There will be (group) assignments and possibly group presentations.
The software to be used is Excel (and possibly R).
The exam for this course has been changed starting academic year 2023/2024. The course now has two ordinary exams. It is not possible to retake the old version of the exam. For questions regarding previous results, please contact InfoHub.
It is the student’s own responsibility to obtain any information provided in class.
Honour Code
Academic honesty and trust are important to all of us as individuals, and represent values that are encouraged and promoted by the honour code system. This is a most significant university tradition. Students are responsible for familiarizing themselves with the ideals of the honour code system, to which the faculty are also deeply committed. Any violation of the honour code will be dealt with in accordance with BI’s procedures for cheating. These issues are a serious matter to everyone associated with the programs at BI and are at the heart of the honour code and academic integrity. If you have any questions about your responsibilities under the honour code, please ask.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
| Assessments |
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Exam category: Submission Form of assessment: Submission PDF Exam/hand-in semester: First Semester Weight: 30 Grouping: Group (4 - 5) Duration: 4 Week(s) Exam code: GRA 65412 Grading scale: ECTS Resit: Examination when next scheduled course |
Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 70 Grouping: Individual Support materials:
Duration: 2 Hour(s) Comment: Support materials: Formula sheet (one-sided DIN A4; computer or handwritten) Exam code: GRA 65413 Grading scale: ECTS Resit: Examination when next scheduled course |
All exams must be passed to get a grade in this course.
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.
The requirement on the group size may change depending on the number of students enrolled for this course.