ECGE1327 - Corporate Finance
Mode of delivery :
Face-to-face , second term, 45 hours of theory.
Monday from 13:30 to 15:30 at Ommegang Om30
Language of instruction :
Learning outcomes :
Students will be able to identify and define the major concepts in corporate finance. They will understand and explain basic techniques in finance and corporate finance. Applying the concepts and techniques will allow students to set objectives in financial management and to solve problems in financial management (e.g. making capital budgeting decisions).
For the Bachelor : Business Engineering :
For the Bachelor in Economics and Management :
For the Bachelor of Science in Business Engineering :
Course contents :
This course aims at familiarizing students with general principles of corporate finance. A particular focus is giving to capital budgeting techniques, risk and return, the CAPM and the cost of capital. Capital structure implications to the value of the firm are also discussed, together with payout policy and financial distress.
The Corporation, financial decision making and the law of one price
Valuing projects and firms :
Investment decision rules and Fundamentals of capital budgeting
Risk and return :
Capital markets and the pricing of risk ; Optimal portfolio choice and CAPM ; Estimating the cost of capital ; Investor behavior and capital market efficiency
Capital structure :
CS in a perfect market ; Debt and taxes ; Financial distress ; Payout Policy
Capital budgeting and valuation with leverage
Planned learning activities and teaching methods :
During the lectures the theoretical concepts will be explained. Examples will be integrated and demonstrated in the lectures. Some of the lectures will be dedicated to exercises, during which students will need to solve financial problems. Students are encouraged to participate to class, answering to questions that will be raised (e.g. using Wooclap).
Assessment methods and criteria :
This course will be assessed based on :
1) a written exam:
- If possible, during an on-campus closed book exam during which theoretical concepts will need to be defined and explained and corporate finance problems need to be solved;
- Should safety measures not allow an on-campus exam: an open book online exam, during which theoretical concepts will need to be identified and corporate finance problems need to be solved.
2) A group assignment in which the theoretical concepts will need to be applied and calculations will need to be (20% of the final mark).
Recommended or required reading :
Corporate Finance: The Core, 5th Edition, Jonathan Berk, Stanford University, Peter DeMarzo, Stanford University, ©2019 Pearson ISBN-13: 978-1292304151
Other information :
On the university's electronic platform the following additional information will be offered:
- a copy of the slides used
- the exercises that will be solved during the lecture. Additional exercises will be added (partially with solutions).