MBA 2394 Corporate Finance
MBA 2394 Corporate Finance
The module deals with the major issues related to financial management in firms. It is organised around three major topics: Determining economic value, economic project analysis, and financing of the firm. Though the focus is on private firms, the methodology used to analyse financial decisions is also relevant for public firms.
The objective of this module is to familiarise the students with how firms should analyse financial issues, and how decisions should be made. The financial decisions dealt with in the module are:
What methods should be used in analysing financial issues?
The real asset decision: How should the firm invest in real productive assets? This is the topic of economic project analysis.
The financing decision: How should the firm finance its real assets? Specifically, how much debt and equity capital should the firm have?
These decisions are typically strategic in nature because they are frequently costly to reverse. In addition, they have significant long-term risk consequences for the firm. Hence an important issue that influences the firms decisions is how to deal with a risky environment. Specifically, how should management balance risk and return when it deals with the above decisions?
Determining economic value:
- Cash flow analysis
- Methods for determining economic value
- The value of bonds and stocks
Economic project analysis:
- Criteria
- Making investment decisions
Risk and return
Financing the firm:
- Cost of capital
- Financial strategy: How much debt?
Approximately 1 day will be spent on the topic Determining economic value and 1½ day on Economic project analysis. The final 1½ will be spent on Risk and return and Financing the firm. Problems and mini-cases will be used throughout to exemplify and familiarise the students with the issues discussed in class.
The course is conducted as a teaching module, where students have classes all day for four subsequent days, a total of 32 hours.
The students are evaluated through an individual written assignment, accounting for 4 ECTS credits.
The course is a part of a full MBA and examination in all courses in the MBA programme must be passed in order to obtain a certificate for the MBA degree.
Granted admission to the BI-Fudan MBA programme. Please consult our student regulations.
| Assessments |
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Exam category: Submission Form of assessment: Written submission Weight: 100 Grouping: Individual Duration: 1 Semester(s) Comment: Individual written assignment, counts 100% of the final grade. Exam code: MBA 23941 Grading scale: China Resit: Examination when next scheduled course |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 4 ECTS credit corresponds to a workload of at least 110 hours.