Corporate Finance

Students are expected to have knowledge about the time value of money, corporate operating and financial free cash flows, return and risk measurement, beta and the Capital Asset Pricing Model, and basics of option pricing, i.e. material covered in the first 1-2 basic or intermediate level courses in Finance. This pre-requisite knowledge is tested in the first mid-term and the scores earned count in the final score for the course (no restriction on participation).

NB! It is your responsibility as a student to ensure you meet all prerequisites before registering for a course.

Failure to do so may result in the cancellation of your participation and the course examinar may withhold any credits earned.

After completing the course, you will be able to:

• identify important economic trade-offs in corporate financial policy
• employ effective financial decisions, especially regarding capital structure choices and payout policy
• evaluate how agency costs and information asymmetry affect corporate financial decisions
• recognize a wide range of modern financial instruments and determine their values
• demonstrate knowledge of where, when, and why to use these instruments and detect their respective advantages and disadvantages
• evaluate empirical research in corporate finance.