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Valid for year : 2011
 
TPPE17 Corporate Finance, 6 ECTS credits.
/Corporate Finance/

For:   I   IE   Ii   INN   MMAT   Y  

 

Prel. scheduled hours: 40
Rec. self-study hours: 120

  Area of Education: Technology

Main field of studies: Industrial Engineering and Management

  Advancement level (G1, G2, A): G2

Aim:
Having completed the course the student should:
  • have knowledge about the trade-offs that guide companies in their choice of capital structure and dividend policy
  • be able to use the net-present-value technoque in capital budgeting and poject appraisals
  • be able to determine appropriate, risk-adjusted costs of capital for companies and projects, with respect to financing sources and tax considerations
  • have knowledge about the characteristics of basic derivative securities and be able to use the Black-Scholes Model to value options


Prerequisites: (valid for students admitted to programmes within which the course is offered)
Basic knowledge in accounting, optimisation, probability theory and statistics.

Note: Admission requirements for non-programme students usually also include admission requirements for the programme and threshhold requirements for progression within the programme, or corresponding.
Supplementary courses:
Financial markets and instruments, Derivatives valuation, Financial risk management, Portfolio management, Financial optimisation
Organisation:
The theory is presented during lectures and in tutorial classes.
Course contents:
  • Net present value methodology
  • Portfolio theory
  • Capital market equilibrium models (primarily CAPM)
  • Dividend- and capital-structure policy
  • Risk-adjusted costs of capital
  • Valuation of loans and financial leases
  • Futures and options contracts


Course literature:
Berk, J. and DeMarzo, P., Corporate Finance, 2007 (BD)
Examination:
A written examination
 6 ECTS
 


Course language is English.
Department offering the course: IEI.
Director of Studies: Martin Kylinger
Examiner: Angelo Corelli
Link to the course homepage at the department


Course Syllabus in Swedish

Linköping Institute of Technology
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Contact: TFK , val@tfk.liu.se
Last updated: 09/09/2015