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Course module: 194110070
194110070
Corporate Finance (for Business Administration)
Course info
Course module194110070
Credits (ECTS)5
Course typeCourse
Language of instructionEnglish
Contact persondr. H.C. van Beusichem
E-mailh.c.vanbeusichem@utwente.nl
Lecturer(s)
Contactperson for the course
dr. H.C. van Beusichem
Lecturer
dr. H.C. van Beusichem
Academic year2014
Starting block
1B/  2B
Application procedureYou apply via OSIRIS Student
Registration using OSIRISYes
Learning goals
Upon completion of this course, students are able to:
-       explain the relationship between risk and return, and the principle of modern portfolio theory;
-       learn how to estimate a firm’s cost of capital and when to use (or not to use) it.
-       distinguish between different forms of efficient capital markets and assess empirical evidence;
-       evaluate alternative methods (such as equity, debt) of raising capital and the significance of capital structure and dividend policy of companies; and
-       analyze the causes and effects of mergers and acquisitions.
Content
Aim
The objective of the course is to provide students with an in-depth understanding of a few corporate financial management decisions.   
 
Course description
The course helps students to learn the modern principles of corporate finance and their application to important financial management decisions. In particular, the course will provide an understanding of relevant theoretical concepts underlying selected financing decisions of firms, and how these decisions impact firm value.
 
Key words
Risk and return, Cost of capital, Efficient capital markets, Capital structure, Dividend policy, Mergers & acquisitions
 
Assessment
Interim test (20%); Written examination (80%)
 
Contribution to the programme learning outcomes
-       The course provides knowledge and understanding of theory and practice of corporate finance.
-       Students learn analyzing several financial management decisions by evaluating advantages and disadvantages of alternative methods, and recommending key solutions.
-       Students identify and evaluate interactions of financial decisions with the capital market.

Recommended prior knowledge
Basic knowledge on finance and accounting is necessary.
Book suggestion:
- Berry, A. and Jarvis, R., Accounting in a Business Context, Cengage Learning, 5th edition, 2011.
- Hillier, D., Clacher, I., Ross, S., Westerfield, R. and Jordan, B., Fundamentals of Corporate Finance,  McGraw-Hill, 1st European Edition, 2011.
 
Assumed previous knowledge
Recommended prior knowledge
Basic knowledge on finance and accounting is necessary.
Book suggestion:
- Berry, A. and Jarvis, R., Accounting in a Business Context, Cengage Learning, 5th edition, 2011.
- Hillier, D., Clacher, I., Ross, S., Westerfield, R. and Jordan, B., Fundamentals of Corporate Finance, McGraw-Hill, 1st European Edition, 2011.
PARTICIPATING STUDY
M-BA
Required materials
Course material
Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B., Corporate Finance, 2013, 2nd European Edition, McGraw-Hill. ISBN 978-0077139148
Course material
Academic papers on blackboard
Recommended materials
-
Instructional modes
lecture

Self study

Tutorial

Tests
Exam

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Kies de Nederlandse taal