Course syllabus adopted 2022-02-09 by Head of Programme (or corresponding).
Overview
- Swedish nameGrundläggande corporate finance
- CodeTEK775
- Credits7.5 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 59112
- Open for exchange studentsNo
Credit distribution
Module | Sp1 | Sp2 | Sp3 | Sp4 | Summer | Not Sp | Examination dates |
|---|---|---|---|---|---|---|---|
| 0122 Project 3 c Grading: UG | 0 c | 0 c | 3 c | 0 c | 0 c | 0 c | |
| 0222 Examination 4.5 c Grading: TH | 0 c | 0 c | 4.5 c | 0 c | 0 c | 0 c |
In programmes
Examiner
Gunnar Wramsby- Lecturer, Entrepreneurship and Strategy, Technology Management and Economics
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. Another interdisciplinary area is Entrepreneurship. Corporate Finance is rather non-contextual research area and therefore fits very well with parts of Entrepreneurship. The purpose of this class is that students should have an analytical understanding of both Corporate Finance and Entrepreneurship, as well as how they are interrelated.Learning outcomes (after completion of the course the student should be able to)
understand corporate finance from a cashflow perspective
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
Also the student is expected to be familiar with and being able to analyze the size and importance of
Entrepreneurial mindset
Markets for new products and services
Being able to deduct customer utility, value-based pricing, and profitability
Methods to raise capital for startups and early-stage firms
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
Also the student is expected to be familiar with and being able to analyze the size and importance of
Entrepreneurial mindset
Markets for new products and services
Being able to deduct customer utility, value-based pricing, and profitability
Methods to raise capital for startups and early-stage firms
Content
Course content includesTime 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
Financial instruments
Entrepreneurship from idea to Business Plan
Organisation
Lectures and mandatory seminars with oppositionLiterature
Berk/DeMarzo, Corporate Finance (Global edition), Pearson, latest editionArticles and additional material
Examination including compulsory elements
On Corporate Finance part (4,5 credits): Individual written exam in excel Fail or 3, 4, 5On Entrepreneurship part (3 credits): Group assignments with opposition Fail/Pass
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.