AØKA08012U Corporate Finance and Incentives (F)

Volume 2015/2016
Education

Prioritized elective at the 3.year of BSc in Economics
Elective at MSc in Economics
The course is part of the Financial line symbolized by "F"
MSc programme in mathematics-economics

Content
  • Financial markets
  • Introduction to the various asset classes
  • Bonds
  • Stocks
  • Derivatives
  • Pricing Methods
  • Bond mathematics
  • Capital Asset Pricing Model (CAPM)
  • Arbitrage Pricing Theory (APT)
  • Binomial Model
  • Black-Scholes Model
  • Definitions of Market Efficiency
  • Behavioral Finance / Corporate Finance
  • Valuing Real Assets
  • Optimal Capital Structure
  • Optimal Dividend Policy
  • Modigliani-Miller Theorems
  • Incentives, Information and Corporate Control
Learning Outcome

Upon completion of the course, students will have developed an understanding of the different asset classes in financial markets as well as an approach on how to price them; including bonds, stocks, forwards, futures and options. Furthermore, the pricing methodology will also be used to illustrate how firms use these methods in order to choose their investment projects. Within the realms of Corporate Finance, we will explore the optimal capital structure of the firm, optimal dividend policy as well as how these and other factors influence how management runs the company.

  • Jonathan Berk and Peter DeMarzo: Corporate Finance, Third Edition, Pearson.

               http:/​/​catalogue.pearsoned.co.uk/​catalog/​academic/​product?ISBN=9780273792024

  • Grinblatt, M. and Titman, S.: Financial Markets and Corporate Strategy, second edition, McGraw-Hill. (US version). Only a few sections from this book will be used and PDF’s will be uploaded to Absalon.
  • Marriott Corporation: The Cost of Capital, HBR case                  
  • Lando, D. and Poulsen, R.: Lecture notes for the course "Investerings- og Finansieringsteori". Chapter 3, except section 3.4 and 3.5.2 and 3.5.3. Available from Absalon in PDF format

 Full note:http:/​/​www.math.ku.dk/​noter/​filer/​fin1/​ifnotes.pdf
 

1st and 2nd year of the Bachelor's programme in Economics
Schedule:

The course consists of 2 hours of classes (lectures) every week, 2x2 every second week and 2 hours of exercise classes every week for 14 weeks. There is weekly mandatory hand-ins.

For enrolled students please find more information of courses, schedule, rules etc at
https:/​/​intranet.ku.dk/​economics_ma/​courses/​Pages/​default.aspx

Timetable and classroom:
For time and classroom please press the link under "Se skema" (See schedule) at the right side of this page (15E means 2015 Efterår (Autumn))
  • Category
  • Hours
  • Class Instruction
  • 28
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 133
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Individual written closed book exam at the computers of Copenhagen University
Exam registration requirements

80% of weekly hand-ins must be approved in order for the student to be eligible to take the exam.

Aid
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
20 % censorship
Exam period

The exam takes place 14 December 2015 at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English),student intranet for Examination (KA-Danish) and student intranet for Examination (BA-Danish).

Re-exam

Same as the ordinary exam. But if only a few students have registered for the re-exam, the exam might change to an oral exam. This means that the examination date also will change.

 

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.