BEC-22306 Corporate Financial Management

Course

Credits 6.00

Language of instruction:

English

Assumed knowledge on:

Introduction to Business Economics or equivalent.

Contents:

The firm is positioned in an environment of market opportunities and risks, with its own financial structure and firm-specific options. Attention is paid to the assessment of the financial structure of the firm, cost of capital, portfolio-analysis, short and long-term financing.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- analyze information in financial reports and to benchmark individual firms against other firms in terms of financial indicators;
- assess and calculate the value of assets in relation to their risk and the way they are financed;
- apply methods for making investment decisions under risk and uncertainty;
- explain theories for defining the optimal capital structure and the relation between capital structure and the value of the firm;
- explain the role of derivate market instruments in reducing risks;
- explain the functioning of markets for long term financing, especially equity and debt financing;
- apply short term finance planning within a business.

Activities:

- lectures;
- (computer) practicals;
- self-study;
- credit assignments;
- stock market game.

Examination:

Written exam including open and multiple choice questions (100%). A credit earning arrangement applies.

Literature:

Literature:
Book: Hillier, Ross, Westerfield, Jaffe and Jordan. Corporate Finance, third European Edition. ISBN-9780077173630. This book will include a connect code for the eBook version as well, and will be for sale at the WUR shop
Handouts
A study guide is available two weeks before the start of the course
Blackboard files available.