AE201103 Corporate finance

AE101102, AE101302, AR100102

The course introduces students to the primary concepts necessary to gain the skills and tools to solve problems concerning investment- and finance decisions within the enterprise.

* Assumptions and basic concepts within corporate finance.
* Budgeting of relevant cash flows.
* Budgeting of working capital.
* Interest calculations (financial mathematics).
* Capital budgeting and investment rules.
* Replacement decisions.
* The impact of taxes and inflation on cash flows.
* Introduction to risk, portfolio analysis and the Capital Asset Pricing Model.
* Sources of financing and the costs of capital.

Lectures and exercises in groups, case studies.
Classfronter will be used to some extent in the exchange of information.

1 compulsory paper must be handed in for assessment. Spreadsheets are to be used in the preparation of the paper. Case and case-solution must be brought to the final exam (in one copy) and shall be handed in together with the examination papers.

The case and the case-solution (in one copy) must be brought to a 3-hour final written exam. At the final exam the problems raised in the case will be tested. The same case and case-solution is to be used at the resit exam.