Essentials of Corporate Finance
The course provides a framework for understanding and analyzing investment and financial decisions of corporations. Lectures and readings provide an introduction to present value techniques, capital budgeting, company valuation, capital structure decisions, corporate cost of capital, initial and seasoned equity offerings. The goal is to provide students with a solid understanding of the theories underlying the firms’ investment and financing decisions as well as with the practical skills needed to solve real-life cases. However, the course will be split in two parts to allow students in Corporate Communications to attend only the first part, which will be focused on investment decisions and om an overview of financial markets and corporate financing.
The text for the course is R. A. Brealey, S. C. Myers, F. Allen, Principles of Corporate Finance – International Student Edition, McGraw Hill, 2019. Many seasoned financial professionals still keep their copy of Brealey and Myers on the shelf behind their desk. The textbook often comes with a CDRom. This software contains PowerPoint notes for each chapter, spreadsheet templates, and Fin Steps software with interactive problems for students to work through to verify their understanding of the materials, among other interesting items. Textbook website with some useful links and information at https://www.mheducation.co.uk/ise-principles-of-corporate-finance-9781260565553-emea-group
In addition to the textbook, there is also a student study guide and a solutions manual for chapter questions: Study Guide to Accompany Brealy, Myers and Allen's Principles of Corporate Finance. The study guide is not required, but is advised if you like to have additional material to study from. The study guide is helpful for learning that material, especially for those with limited background in finance.
The readings can be found in the Brealey-Myers-Allen textbook (BMA), while the professor’s slides (available for some lectures) are downloadable from the course website. The course topics marked with “Corp Comm” are the lectures that should be taken by students of Corporate Communications, approximately half course and 28 teaching hours.
In case the Covid conditions will allow an exam in class, the exam will be closed book and with the following structure. Students need only bring a calculator and writing utensils to class. All information other than your own knowledge will be provided with the exams. Final Examination Date: To be determined.
- Final Exam’s structure for the whole course: 20 multiple choices (5 points), 4 short exercises (2 points) and one capital budgeting/valuation exercise (3 points) for a total of 10 points.
- Final Exam’s structure for the first part of the course: 24 multiple choices (6 points), 2 short exercises (1 points) and one capital budgeting/valuation exercise (3 points) for a total of 10 points.
Exam policy for students from the Master in Corporate Communication (3 ECTS)
In case the Covid conditions will allow an exam in class the exam will also be closed book and with the following structure. Students need only bring a calculator and writing utensils to class. All information other than your own knowledge will be provided with the exams. Final Examination Date: to be determined.
- Final Exam’s structure: 25 multiple choices (6 points), 2 short exercises (1 points) and one capital budgeting exercise (3 points) for a total of 10 points.
The information contained in this syllabus may be subject to moderate changes. The course instructor will communicate any modifications to students.