Content, progress and pedagogy of the module

The aim of this module is to develop optimal strategic decisions by applying advanced theoretical and applied treatment of major issues in corporate finance. The module puts significant emphasis on the interaction between capital markets and the value of the underlying real assets.

The module is divided in two parts. The first part of the module is an in-depth exploration of advanced theories used to understand financial markets in the context of corporate borrowing and lending, discuss financing frictions, security design and the process of security issuance in equity markets, the role of corporate control, and the interaction of control rights and cash flow rights, corporate risk management evaluation and hedging. In the second part of the module real-world cases will be presented/discussed on capital budgeting, the design of optimal capital structures, valuation of private equity buyouts, among others.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• standard theories and models of corporate finance.
• problems caused by moral hazard, principal-agent relationships, asymmetric information and adverse selection.
• what learning style and processes that motivate individual and group learning.

Skills

The objective is that the student after the module possesses the necessary skills in:

• developing analytical skills to evaluate complex corporate finance decisions.
• understanding the perspectives of corporate managers, shareholders, financiers and financial intermediaries of key financial decisions.
• understanding the key driving forces in important models in corporate finance.

Competences

The objective is that the student after the module possesses the necessary competences in:

• developing basic skills within theoretical issues in corporate finance and be able to criticize and apply critically be able to discuss, theoretical issues in corporate finance and related current events.
• discussing and critically evaluating central methods and models applied within corporate finance based on scientific analyses.
• analysing theoretically and/or empirically complex problems within corporate finance and use the generated knowledge to scientifically argue for specific decisions that are applicable within the given context independently and in teams.

Type of instruction

For information see §17.

Exam

Exams