Corporate Finance (B-KUL-HSH94A)

Aims
2.a
Understands basic theories, basic terms, and basic concepts of each management domain, in particular with respect to the financial, operational, commercial and organisational activities, and can apply them when solving business problems.
2.a.1
Is able to understand and describe the main financial concepts in corporate finance
2.c
Understands and substantiates the critical importance of each management domain for a successful organisation and the coherence with other management domains.
2.i
Masters the basic concepts and the overall functioning of banking, the stock market and the insurance business as well as the characteristics and functioning of the most important financial products and financial markets.
2.i.1
Is able to determine the intrinsic value of important financial instruments such as shares and bonds
2.j
Using the principles of time value of money, interprets information from financial reporting and news coverage, and uses all this as input in financial issues.
2.j.1
Is able to evaluate investment decisions using well-known investment decision criteria: NPV, EAC, PI
2.j.2
Is able to evaluate the firm’s main financing decisions
2.j.3
Is able to evaluate portfolio investment decisions within a risk-return framework
2.k
Makes a reasoned assessment of the impact of uncertainty on the financial decisions of individuals and organisations.
2.k.1
Can explain the relation between risk and return using the well-known CAPM model and possible extensions of this model
8.a
Identifies (business) economic challenges with practical relevance and relates them to insights developed in the field.
8.g
Shows interest in current affairs and broadens his background knowledge.
12.d
Integrates sustainability values in the analysis of topical (business) economic problems and proposes solutions that take into account these values.
Previous knowledge
There is no specific preknowledge required for this course
Identical courses
This course is identical to the following courses:
HSA23A : Corporate Finance (B)
Y00341 : Corporate Finance (S)
HTH88A : Corporate Finance (BL)
HBA18C : Corporate Finance
Is included in these courses of study
Activities
6 ects. Corporate Finance (B-KUL-HSH94a)




Content
Value and value-creation
- goals and governance of the firm
- calculating present values
- valuing bonds
- valuing stocks
- NPV and other investment criteria
- Investment decisions with the NPV-rule
Risk
- introduction risk and return
- portfolio theory and CAPM
- risk and the cost of capital
Other corporate finance topics
- Agency, compensation and performance management
- Efficient markets and behavioral finance
- Debt policy
- working capital management.
Depending on timing, the fastly changing financial environment and expertise, professors can choose to elaborate on other corporate finance topics or organize one or more business-oriented guest-lectures.
Course material
Recommended study material:
Principles of Corporate Finance, custom edition based on 13th edition - compiled by Decan, H., D'Espallier, B. and Praet, A.
Publisher: McGraw-Hill. ISBN: 9781307561722
Evaluation
Evaluation: Corporate Finance (B-KUL-H74929)
Explanation
The exam consist of theoretical questions and exercises. Questions on subjects treated by invited guest lectures/business seminars (if any) are possible. Part of the exam can be in the form of multiple choice questions (a correction for guessing will be applied for multiple choice questions – details will be discussed during the lectures).
Information about retaking exams
The features of the evaluation and determination of grades are identical to those of the first examination opportunity.