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2007 - 2008 gammel / Course descriptions / AE201106 Corporate finance  

AE201106 Corporate finance

Course Code
AE201106

Course Name
Corporate finance

Credits
7.50

Target Audience
Business Management

Prerequisites

Courses in business economics, mathematics,statistics and financial accounting

Objectives

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.

Topics

* 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.
* Fundamentals of option valuation (brief)
* Foreign exchange markets and exchange rates (brief)

Instruction

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

Mandatory Assignments

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.

Evaluation

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.

Grades
ABCDEF

Revised date
19/02/2007