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EXC 3671 Corporate Finance

EXC 3671 Corporate Finance

Course code: 
EXC 3671
Department: 
Finance
Credits: 
7.5
Course coordinator: 
Salvatore Miglietta
Product category: 
Bachelor
Portfolio: 
BBA - Specialisation in Finance
Semester: 
2019 Autumn
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

The aim of this course is to provide the students with essential basic knowledge and skills with respect to corporate financial decisions. It provides an understanding of the fundamental financial problems faced by corporations and teaches how to carry out simple corporate financial analyses, make decisions and communicate the results of the analyses in a comprehensible manner.

The course Corporate Finance is mainly focused on financing issues, that is, when and in what way should companies raise capital for their investment and operational activities. By studying the main activities carried out in a company as financing projects over multiple periods, emphasis is placed on evaluating all economic effects of a project with a long-term perspective and consequently being able to optimally make both investment and strategic decisions. With this goal in mind the course not only reviews the classical economic theories of frictionless markets and the optimal corporate decisions therein but also incorporates and analyses market frictions and how the optimal decisions are modified accordingly.

Learning outcomes - Knowledge

After taking the course, the students shall be able to explain key concepts and give an account of the tools used in analyses of corporate finance problems (these tools include methods, techniques, models, theories, etc. applied in the subject area). Some examples of the concepts that students shall be able to explain are:

  • Differentiation between the advantages and/or disadvantages of different financing instruments
  • Capital structure decisions in different tax regimes
  • How dividend decisions might affect firm value
  • The difference between a merger and an acquisition.

 

Learning outcomes - Skills

After taking the course, the students shall be able to (a) apply knowledge (i.e. concepts and skills) in analyses and discussions on corporate financial problems, (b) distinguish between relevant and irrelevant financial information about a corporation, and (c) give written answers to questions so that the readers understand the applied methods and conclusions. Examples:

  • When the tool is given, be able to apply the tool correctly
  • Based on simple situation descriptions, choose the right tool and apply it correctly
  • Based on more complex situation descriptions, be able to produce relevant information, link it to the suitable tool and apply the tool correctly
     
General Competence

After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the field of corporate finance. They shall be able to understand the general context in which the financial operations of a company take place and understand the effects on the company and its stakeholders of the various financial decisions that may be taken.

Course content
  • Cost of capital
  • Financing
  • Capital structure decisions
  • Market imperfection and agency problems
  • Dividend policy
  • Mergers and acquisitions
Teaching and learning activities

The course will include a combination of lectures and plenary tutorials where solutions to exercises will be explained. 

Please note that whilst attendance is not compulsory, it is the students responsibility to obtain any information provided in class that is not included on the course homepage/itslearning or the text book. 

Students are recommended to use computer-based tools, e.g. spreadsheets. Such tools, however, are not allowed at the examination.

Software tools
No specified computer-based tools are required.
Additional information

.

Qualifications

The specialisation requires two years of university education in Business Administration or equivalent.

Required prerequisite knowledge

EXC 2910 Mathematics, EXC 2904 Statistics, EXC 2110 Basic Financial Management, or equivalent.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Structured test
Exam code:
EXC36711
Grading scale:
ECTS
Grading rules:
Internal examiner
Resit:
Examination every semester
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Interest table
Individual
Exams:
Exam category:Submission
Form of assessment:Structured test
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Interest table
Duration:3 Hour(s)
Comment:
Exam code:EXC36711
Grading scale:ECTS
Resit:Examination every semester
Type of Assessment: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching36Hour(s)
Review of assignments in plenary9Hour(s)
Prepare for teaching115Hour(s)
Self study40Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:36 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:9 Hour(s)
Comment:
Workload activity:Prepare for teaching
Duration:115 Hour(s)
Comment:
Workload activity:Self study
Duration:40 Hour(s)
Comment:
Sum workload: 
200

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.