Corporate Finance (4 cr)

Objectives (course unit)

The course covers the basic aspects of corporate finance, the structure and functions of financial markets and elements of decision making on financial questions.
After completing the course, students will be able to:

- Compare the investment opportunities of a company and define their profitability by using alternative investment decision criteria
- Compare the alternative sources of corporate financing
- Calculate the cost of capital
- Define how risk relates to return
- Describe the structure and functions of financial markets

Content (course unit)

- How do companies compare different investment opportunities?
- What are the alternative sources of corporate financing?
- How are risk and return related?
- How is the cost of capital defined?
- What is the structure and what are the functions of financial markets?

Prerequisites (course unit)

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Assessment criteria, satisfactory (1-2) (course unit)

The student is able to explain the fundamentals of corporate finance. The student recognises and is able to determine and to a certain extent use the fundamental concepts and models of corporate finance.

Assessment criteria, good (3-4) (course unit)

The student is able to determine and apply the fundamental concepts and models of corporate finance. He/she can use different methods to evaluate investment opportunities and understands how risk and return are related.

Assessment criteria, excellent (5) (course unit)

The student masters the fundamental concepts and models of corporate finance in an excellent manner. He/she is able to conduct fluent and reasoned analysis and has good capabilities to apply the learned understanding of the framework of financial markets.

Location and time

The course starts during week 3/2022

Exam schedules

in April 2022, date still open

Assessment methods and criteria

- Exam (80%)
- Homework, MyFinanceLab (20%)

Assessment scale

0-5

Teaching methods

- lectures
- assignments (MyFinanceLab)

Learning materials

- Fundamentals of Corporate Finance, Global Edition, Second Edition. J.Berk, P.DeMarzo and J. Harford. Pearson International Edition.2019 or older edition
- MyFinanceLab - online material
- Moodle - online material

Student workload

4 ECTS, approximately 108 hours.

Content scheduling

Lessons usually once a week

Completion alternatives

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Practical training and working life cooperation

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International connections

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Further information

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Assessment criteria - fail (0) (Not in use, Look at the Assessment criteria above)

Student has not achieved the objectives of the course.

Assessment criteria - satisfactory (1-2) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course sufficiently. Student understands fundamentals of corporate finance. Student recognizes, is able to determine and to a certain extent use the fundamental concepts and models of corporate finance.

Assessment criteria - good (3-4) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course well although the skills and competences are somewhat in need of further development. Student is able to determine and apply the fundamental concepts and models of corporate finance well.

Assessment criteria - excellent (5) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course excellently. The student masters the fundamental concepts and models of corporate finance in an excellent manner. Student is able to conduct fluent and reasoned analysis and has good capabilities to apply the learning.