Course syllabus for Foundations of corporate finance

The course syllabus contains changes
See changes

Course syllabus adopted 2021-02-26 by Head of Programme (or corresponding).

Overview

  • Swedish nameGrundläggande corporate finance
  • CodeTEK557
  • Credits4.5 Credits
  • OwnerTKTEM
  • Education cycleFirst-cycle
  • Main field of studyIndustrial Engineering and Management
  • DepartmentTECHNOLOGY MANAGEMENT AND ECONOMICS
  • GradingTH - Pass with distinction (5), Pass with credit (4), Pass (3), Fail

Course round 1

  • Teaching language Swedish
  • Application code 59114
  • Maximum participants60
  • Open for exchange studentsNo

Credit distribution

0120 Examination 4.5 c
Grading: TH		 4.5 c
  • 12 Mar 2022 pm J DIG
  • 09 Jun 2022 pm J DIG
  • 19 Aug 2022 pm J DIG

In programmes

Examiner

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Eligibility

General entry requirements for bachelor's level (first cycle)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Specific entry requirements

The same as for the programme that owns the course.
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Course specific prerequisites

The same prerequisites as for the program for which the course is part of the study plan.

Aim

Economics is a broad area of subjects and research areas where theoretical ground and practical implication varies significantly. One area that has implications from business administration as well as economics and industrial economics is Corporate Finance, that has solid theoretical ground and still strong practical application. The area has strong analytical relevance with statistical applications in a theoretical context. The purpose with this class is to introduce students to one of the fastest growing, most research intensive and most quantitative areas within economics – Corporate Finance.

Learning outcomes (after completion of the course the student should be able to)


-understand corporate finance from a cashflow prespective -understand the concept of Capital Asset Pricing Model as well as portfolio theory -be able to describe theoretical concepts like perfect markets, agent theory and optimal capital structure from a Modigliani Miller perspective This means that students are expected to have following skills after finishing this class - be able to apply different capital budgeting methods and understand limitations - be able to perform valuation calculations based on cash flows -be able to apply different valuation techniques based on cash flow information -work with spreadsheet software to solve financial problems -be able to apply and compare various alternative ways of using and raising capital -judge and evaluate ethics and incentives within corporations

Content

Course content includes - Time value of money concept - Estimating company cost of capital - Valuation methods - Methods of capital budgeting and valuation techniques - Capital Asset Pricing Model and portfolio theory - Risk and return - Capital structure decisions in perfect markets and with taxes - Dividend policy

Organisation

Lectures on different topics

Literature

Berk/DeMarzo, Corporate Finance (Global edition), Pearson, latest edition

Examination including compulsory elements

Individual four hour written exam

The course examiner may assess individual students in other ways than what is stated above if there are special reasons for doing so, for example if a student has a decision from Chalmers on educational support due to disability.

The course syllabus contains changes

  • Changes to module:
    • 2024-06-04: Digital exam Changed to digital exam by Rickard Johansson
      [0120 Examination 4,5 credit] Changed to digital examination inspera