AØKA08012U Corporate Finance and Incentives

Volume 2014/2015
Education
MSc in Economics
BSc in 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
3 Lectures and 2 exercise workshops every week in 14 weeks with weekly mandatory hand-ins.
  • Category
  • Hours
  • Class Instruction
  • 28
  • Exam
  • 3
  • Lectures
  • 28
  • Preparation
  • 161
  • Total
  • 220
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Closed book exam at Peter Bangs Vej 36 with the option to answer in Danish.
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
Exam period
Will be updated before the start of the semester
Re-exam
Same as ordinary
Criteria for exam assesment

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