17026 Corporate Finance, 5 sp
Special focus areas are long-term capital structure and dividend policy decisions, as well as the effect of agency costs and asymmetric information on corporate financial policy.
This course is a shorter master level version of the bachelor level course Corporate Finance (8 ECTS, course code 1738), and is only for students within the English master's programme.
You have an in-depth knowledge of theories that explain the connections between corporate financial decisions, corporate governance mechanisms and the value of the firm. Managing working capital, leasing decisions and financial consequences of mergers and acquisitions are other important topics. Interactions between corporate financial policy and governance are also introduced.
- detect important economic trade-offs in corporate financial policy and take steps towards more effective policies, in particular long-term capital structure and payout policy decisions.
- recognize the important of agency costs and asymmetric information in financial decision-making.
- recognize a wide range of modern corporate financial instruments and can value them at an intermediate level. You know where, when and why to use the and can assess their relative merits.
- develop skills to evaluate empirical research in corporate finance.
Principles of Corporate Financial decision making are universal with rich international applications in all commercial industries but also other areas of economic life where fund raising is crucial for long-term success. The course deals with agency problems, costs of asymmetric information which are pervasive issues in all areas of human interaction. The course textbook is worldwide bestseller so also in this regard students immerse themselves with internationally relevant and transferrable subject matter.
Hanken master's degree students within the English programme Financial Analysis and Business Development (all tracks) only.
Students are expected to have knowledge about time value of money, corporate operative and financial free cash flow, return and risk measurement, beta and the Capital Asset Pricing Model and basics of option pricing, i.e. material covered in the first 1-2 basic or intermediate level courses in Finance. This pre-requisite knowledge is tested in the first mid-term and the scores earned count in the final score from the course (no restriction on participation).
134 hours divided into
Scheduled (contact) hours:
Lectures, 3 mid-term exams, Excel-based mini-cases, Final exam.
- Berk, J. & DeMarzo, P. M. (2016). Corporate finance. 4th global edition. Harlow: Pearson.
- Additional literature and articles assigned by the examiner.
Written closed book examination
Mid-term 1/Introductory test (90 min.) 15%
Mid-term 2 (90 min.) 15%
mid-term 3 (90 min.) 15%
Mid-term 1-3 re-take (3h 45min)
Excel test (2h) 25%
Final Exam (4h) 30%
This course is a shorter master level version of Corporate Finance (8 ECTS, course code 1738). Student who have completed the 8 ECTS version cannot take this 5 ECTS version.