Asset Pricing and Capital Budgeting

Faculteit Economie en Bedrijfskunde
Jaar 2017/18
Vakcode EBP032A05
Vaknaam Asset Pricing and Capital Budgeting
Niveau(s) propedeuse, uitwisseling
Voertaal Engels
Periode semester II b
ECTS 5
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Uitgebreide vaknaam Asset Pricing and Capital Budgeting
Leerdoelen Upon completion of the course the student is able to:
1. Reproduce, explain and apply methods of valuation to the field of capital budgeting
2. Reproduce, explain and apply methods of valuation to the field security (stock and bond) valuation
3. Define and discuss the interactions of firms with both financial and real markets in making financial decisions
4. Define and discuss the fundamental risk-return relationship and apply relevant theories and models
5. Create an Excel model to underpin an advice in a financial decision making problem
6. Work on a solution of a financial decision making problem in a team
Omschrijving Value and value creation are central concepts of Corporate Finance. The value of an asset depends on the size, the timing and the risk of the expected cash flows generated by an asset. In this course you will learn how to determine the risk-adjusted cost of capital. You will apply these techniques to valuing of shares and bonds and to investment decisions of a firm. The analysis of investments will show you the relation between financial accounting and corporate finance. Next, the financing decisions of firms will be dealt with, taking into account institutional aspects of capital markets and the efficiency of these markets.
Uren per week 5
Onderwijsvorm hoorcolleges, practica, werkcolleges
(guest lectures)
Toetsvorm opdracht(en), schriftelijk tentamen met meerkeuzevragen, schriftelijk tentamen met open vragen
(Written exam with open and/or MC questions, group assignment, midterm exam, weekly MC quizzes)
Vaksoort propedeuse
Coördinator dr. M.A. Lamers
Docent(en) dr. ing. N. Brunia , S.S.H. Eriksen , Y. Jiang, M. ,dr. E. Karmaziene ,dr. M.M. Kramer ,dr. M.A. Lamers , student-assistants
Verplichte literatuur
Titel Auteur ISBN Prijs
Fundamentals of Corporate Finance, 4th Global edition, 2018 Berk, Jonathan, Peter DeMarzo, and Jarrad Harford 9781292215075 ca. €  65,00
Entreevoorwaarden Admittance to the BSc E&BE. Depending on e.g. capacity, other students may be allowed to participate in some or all course activities. (To be decided by the Programme Director)
Opmerkingen Secretariat EE&F: Grietje Pol, Room:DUI0836, Phone: 050-36 33685, Mail: g.pol@rug.nl, Mail coordinator: m.a.lamers@rug.nl
This course is also open for a max of 5 exchange students.
Opgenomen in
Opleiding Jaar Periode Type
BSc Economics and Business Economics/E&BE  (basisprogramma BSc E&BE) 1 semester II b verplicht
Courses open to Exchange Students (BSc)  (Courses open to Exchange Students (BSc) with limited access) 2 semester II b keuze
Pre-MSc-programma’s FEB  (Pre-MSc BA Organizational & Management Control/O&MC) 1 semester II b verplicht