Corporate Finance
Moreover, students will carry out an applied company analysis for the purpose of corporate valuation by linking issues of corporate finance to various aspects of the financial markets. This course focuses on concepts and theories of corporate finance and the analytical techniques used to value projects and assets.
The topics covered in corporate finance are capital budgeting and investment decisions, analysis of questions such as where and how to raise the funds for corporate investments (the financing decisions) and how much of the firm’s profit should return to the owners (the dividend decision). The final part covers models for company valuation with emphasis on discounted cash flow models thereby determining relevant cash flow and adequate cost of capital.
The overall aim of the course is to link issues of corporate finance to the firms’ decisions and actions from both a theoretical and a practical perspective.
The course consists of a combination of lectures, seminars and group work and requires a significant portion of self-study on the part of students. Assessment for the course will be continuous and is carried throughout the different activities of the course.
The course workload is 200 hours equivalent to 7,5 ECTS (40 hours per week equivalent to 1,5 ECTS).
The language of instruction is English.
Please note that all teaching and learning activities - such as lectures, seminars, assignments and assessment tasks – are carried out in English when the language of instruction is English.
Information about case company
The case company in the course is the company to which the theory of corporate finance is applied, with various financial calculations and discussions, such as the annual general meeting, corporate governance, board of directors, ownership, optimal capital structure, dividends, and risk assessment. And the final exercise in the course is to perform a DCF valuation of the case company.
Assessment for the course will be continuous and is carried throughout the different course activities. Each assessment task is weighted in relation to its importance in the overall assessment of the course. The student’s results from the different assessment tasks are added up to a total course score that will then translate into the final grade for the course.
See reading list in the current syllabus.
Course coordinator: coursecoordinator@sbs.su.se
Head of course: Tor Brunzell
