Corporate Finance and Risk Management (5 cr)

Evaluation scale

0-5

Objective

At the end of this course students should be able to:
- comprehend cost of capital by incorporating relevant benchmarks and risk profiles of firms
- appraise asset valuation
- analyse investment and financing strategies of firms
- justify financing choices in the light of taxation and bankruptcy costs
- assess multiple dynamics of managerial incentives and motivations, and their effects on firm value
- synthesise various aspects of mergers and acquisitions (M&As)
- understanding and application of financial technology (FINTECH)
- compare and use different financial derivative instruments in order to do corporate risk management.

You are expected to acquire the following competencies in this course:

Learning to learn
• You recognize your strengths and needs for learning.
• You make use of learning methods and tools that support your learning best.
• You seek, acquire, and critically assess information from reliable sources.

Proactive development
• You identify development areas by anticipating the future of your field.
• You apply existing knowledge and utilize appropriate research methods in development projects.
• You develop the ability to think out of the box and challenge the limits to come up with creative and innovative solutions.

IBM competence:
Sustainable global business management
• You critically review and understand core concepts of global business management and sustainability from multidisciplinary perspectives of marketing, sales, strategy, finance, and management.
• You apply disciplinary and interdisciplinary knowledge to analyze global business challenges and propose sustainable business solutions to grow new ventures in global markets.

Content

Assets valuation, Capital Structure and Corporate Strategy, Impact of taxes on Financing Choice, Dividend policy & Share Repurchases; Bankruptcy Costs and Debt Holder-Equity Holder Conflicts; Managerial Incentives and Financial Decisions, M&As, Corporate Strategy, Risk Management, and FINTECH. Corporate risk management, quantitative financial analysis, investment analysis, corporate finance, firm leverage and cost of capital, international finance, accounting information analysis, corporate valuation, investment appraisal, strategic management accounting, financial forecasting, sustainable finance, wealth management, behavioral finance, financial technology (FINTECH), financial scandals, executive remuneration financial institutions and markets etc.

Location and time

March to June (Spring semester)

Materials

Brealey, R.A., Myers, S.C., & Allen, F. Principles of Corporate Finance, 10th Edition.
Grinblatt, M. & Titman, S. 2001. Financial Markets and Corporate Strategy. 2nd edition, McGraw Hill.
Shapiro, A. 2006. Multinational Financial Management, 8th Edition, J. Wiley & Sons.
Madura, J. 2000. International Financial Management, 10th edition, South-Western College Publishing (A division of International Thomson Publishing Inc.)

Recommended research articles

Lecture notes, recorded lectures and exercises.

http://www.economist.com/
http://www.ssrn.com/en/
http://www.reuters.com/
https://www.investing.com/
http://uk.finance.yahoo.com/
http://europe.wsj.com/home-page

Teaching methods

In-classroom teaching, online teaching, recorded videos, and self-study.
The attendance of the students in the classroom in mandatory.

Exam schedules

There will be an exam carrying 40% of total credits and assignments carrying 60% of total credits.

International connections

There is a possibility of participation in the international projects.

Student workload

Lectures 27 h
Assignments 54 h
Independent study 54 h
Total 135h ( one credit equals 27 hours of student work)

Assessment criteria, satisfactory (1)

Sufficient (1):
You have demonstrated a basic level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Satisfactory (2):
You have demonstrated an intermediate level of knowledge, skills, applications in one and basic level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Assessment criteria, good (3)

Good (3):
You have demonstrated an excellent level of knowledge, skills, applications in one and intermediate level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Very good (4):
You have demonstrated an excellent level of knowledge, skills, applications in two and intermediate level in the remaining competence out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Assessment criteria, excellent (5)

You have demonstrated an excellent level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Qualifications

Bachelor degree in business or economics or equivalent.

Further information

Open UAS 3