TPPE63 Corporate Finance, 4,5 ECTS-points
/Investerings- och finansieringsteori/

Advancement level:
D

Aim:
The aim of the course is to present models and methods concerning financial decision making based on the theory of capital markets. The general perspective is on the interactions between a company and a well-functioning capital market. The course is designed to describe the role of financing in companies and in project evaluation. After the course the students should be able to compare and evaluate different financing alternatives and to determine the company or project cost of capital. Further, the students should also have knowledge about the characteristics of common derivative instruments (e.g. options, futures, and forward contracts) and corresponding valuation principles.

Prerequisites:
TPPE 05 Capital Budgeting and Financial Markets

Supplementary courses:
TPPE 80 Financial Valuation Methodology, TPPE 81 Financial Risk Management

Course organization:
The teaching is organized in lectures and seminars. At the lectures various theories, models, and methods will be treated. The seminars will be used the discussion of cases and theory related problems.

Course content:
Dividend policy. Theory of capital structure. Valuation and comparison of different financing alternatives (e.g. equity, debt, leasing). Company valuation. Derivative securities.

Course literature:
Brealey, R.A., and S.C. Myers, Principles of Corporate Finance, McGraw-Hill. Articles and lecture notes handed out.

TEN1, 3 p.
Course language is swedish.