| TPPE17 |
Corporate Finance, 6 ECTS credits.
/Corporate Finance/
For:
I
Ii
Mat
MMAT
Y
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OBS! |
The course is not available for exchange students
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Prel. scheduled
hours: 48
Rec. self-study hours: 112
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Area of Education: Technology
Main field of studies: Industrial Engineering and Management
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Advancement level
(G1, G2, A): G2
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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
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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.
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Supplementary courses:
Financial markets and instruments, Financial risk management, Financial valuation methodology, Portfolio management, Financial optimization
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Organisation:
The theory is presented during lectures and in tutorial classes.
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Course contents:
- Net present value methodology
- Portfolio theory
- Capital market equilibrium models (primarily CAPM)
- Dividend- and capital-structure policy
- Risk-adjusted costs of capital
- Company valuation
- Valuation of loans and financial leases
- Futures and options contracts
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Course literature:
Berk, J. and DeMarzo, P., Corporate Finance (BD)
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Examination: |
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A written examination
Assignment
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5 ECTS
1 ECTS
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Course language is English.
Department offering the course: IEI.
Director of Studies: Fredrik Persson
Examiner: Ou Tang
Link to the course homepage at the department
Course Syllabus in Swedish
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