YLAA4110 Corporate Finance (6 cr)
Description
Firm Objective and Governance, Optimal Capital Structure, Financial Markets, Impact of Taxes on Financing Choice, Capital Budgeting, Dividend Policy and Shareholder Value, Bankruptcy Costs and Debt Holder-Equity Holder Conflicts, Managerial Remuneration and Incentives, Mergers & Acquisitions, Risk Management (including use of financial derivatives) and Real Options, and Ethics in Corporate Finance.
The course topics support understanding economic growth, financial services and making productive investments e.g. according to UN sustainable development goal 8 (Decent Work and Economic Growth). The course contents are also related to UN sustainable development goals 1 (No Poverty) and 5 (Gender Equality).
Learning outcomes
- calculate cost of capital using relevant benchmarks and risk profiles of firms
- valuate real assets
- examine and discuss investment and financing strategies of firms
- analyze financing choices in the light of taxation and bankruptcy costs
- describe variegated aspects of managerial incentives and motivations, and illustrate how they affect firm value
- describe various dynamics of mergers and acquisitions
- compare and use different financial derivative instruments in order to do corporate risk management.
Additional information
Note: YLAA4110 and YLAS4110 are overlapping course alternatives.
Description of prerequisites
Basic Business Studies, Introduction to Finance.
Compulsory prerequisites
- Prerequisite group 1
Recommended prerequisites
- Prerequisite group 1
- Prerequisite group 2
- Basic Business Studies as Optional StudiesNot published for this curriculum period
- Prerequisite group 3
- Prerequisite group 4
- Basic Business Studies as Optional StudiesNot published for this curriculum period
Study materials
Lecture notes and exercises during surgery sessions
Literature
- Shapiro, A. 2006. Multinational Financial Management (8th Edition), J. Wiley & Sons.ISBN: 9780471737698
- Damodaran, A. 2015. Applied Corporate Finance (4th Edition). Wiley.