Corporate Finance for E&BE

Faculteit Economie en Bedrijfskunde
Jaar 2017/18
Vakcode EBB079A05
Vaknaam Corporate Finance for E&BE
Niveau(s) bachelor, uitwisseling
Voertaal Engels
Periode semester II b (ook in semester I b)
ECTS 5
Rooster rooster

Uitgebreide vaknaam Corporate Finance for E&BE
Leerdoelen Upon completion of the course the student is able to:
1. Combine accounting and other information to derive an overview of the expected cash flows of capital budgeting projects.
2. Describe, explain and compare in considerable detail various valuation techniques, including the APV method and the WACC method.
3. Describe and explain in considerable detail capital structure and dividend policy theories, and analyse the outcomes under different sets of assumptions.
4. Describe and explain in considerable detail theories about relationships between managerial incentives, information asymmetries and financial decisions.
5. Solve relatively complex capital budgeting and capital structure problems in corporations.
6. Analyse how the various theories can be used to explain phenomena observed in financial markets.
7. Make a well-founded decision about whether or not to apply for a position in the field of finance or to enrol for a master programme in this field.
Omschrijving In this course, the lessons learnt from studying the valuation of financial assets, will be applied to the valuation of real assets, such as factories and machines. Various methods for real asset valuation will be considered, including the Weighted-Average-Cost-of-Capital method, the Adjusted Present Value method and real options approaches. Also ways to derive expected future cash flows (being an important input for real asset valuations) from accounting statements and other information will be discussed. In addition to the valuation of real assets, the financing of firms will be covered in this course. Taking the irrelevance theorem as a starting point, the course will explore the consequences of, for instance, taxes, agency problems and information asymmetries, on the capital structure of firms. A similar set of arguments will be applied to firms' pay-out policies.
Uren per week 4
Onderwijsvorm hoorcolleges, werkcolleges, zelfstudie
(and Guest Lecture. Total contact hours: 29)
Toetsvorm schriftelijk tentamen met open vragen
Vaksoort bachelor
Coördinator dr. P.P.M. Smid
Docent(en) drs. M.E. Helmantel , S. Homroy ,dr. P.P.M. Smid
Verplichte literatuur
Titel Auteur ISBN Prijs
Financial Markets and Corporate Strategy, 2012, Second European edition, McGraw-Hill Hillier, D., M. Grinblatt and S. Titman 9780077129422 €  76,00
Entreevoorwaarden Basic skills in accounting are strongly recommended.
Strongly recommended prior: Intermediate Asset Pricing
Opmerkingen The course builds on the knowledge obtained from the first year course Asset Pricing and Capital Budgeting, and the second year course Capital Structure and Financial planning.
The textbook selected for the course Corporate Finance will also be used for the course Intermediate Asset Pricing. Corporate Finance uses the following parts: chapters 9-21.
Secretary: Grietje Pol, phone: +31(0)50 3633685, email: g.pol@rug.nl, room: 5411.0836
Opgenomen in
Opleiding Jaar Periode Type
BSc Bedrijfskunde/Bdk  (minor Finance) 3 semester I b verplicht
BSc Economics and Business Economics/E&BE  ( Business Economics) 3 semester II b verplicht
BSc Economics and Business Economics/E&BE  (keuzevakken E&BE-Economics) 3 semester II b keuze
BSc Economics and Business Economics/E&BE  (keuzevakken E&BE-IE&B) 3 semester II b keuze
Courses open to Exchange Students (BSc)  ( Courses open to Exchange Students (BSc) without limited access) 3 semester I b keuze
Courses open to Exchange Students (BSc)  ( Courses open to Exchange Students (BSc) without limited access) 3 semester II b keuze
Pre-MSc-programma’s FEB  (Pre-MSc Finance) 1 semester II b verplicht