MB405 – Corporate Finance

Master of Science in Financial Law and International Taxation

Core Course

MB405 – Corporate Finance

Course Unit Code: MB405

Type Of Unit: Elective

Level of Course Unit: Second cycle

Year of Study: First/second year

Semester: On demand

Number of ECTS Credits: 6

Class Contact Hours: 28

Mode of Delivery

Face to Face

Prerequisites

None

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The objective of this course is to introduce the fundamental concepts of the theory and practice of finance paying particular attention to helping managers make the right corporate finance decisions.

Learning Outcomes

  • Define the various types of financial instruments.
  • Distinguish between the various types of financial institutions.
  • Apply the concept of time value of money and use that for capital budgeting.
  • Apply the concept of cost of capital to make corporate finance decisions.
  • Understand capital structure decisions and payout policies.
  • Compute the value of bonds and common stock.

Course Features

Planned learning activities and teaching methods
Lectures; in-class discussion and debates; in-class exercises; problem sets; teaching experiments; team work; video; case studies; teaching experiment

Assessment methods and criteria
10% Participation
30% Case presentation
60% Final exam

Language of Instruction
English

Work Placement(s)
Not applicable

Readings

Textbooks:

1. Brealey, R., Myers, S. & Franklin A. (2013). Principles of Corporate Finance, (11th ed.). McGraw-Hill/Irwin.

Articles & Journals:

2. Jensen, C. M. and W. H. Meckling (1976), “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics, October, 1976, V. 3, No. 4, pp. 305-360.

3. Myers, S. C. and N. S. Majluf (1984), “Corporate financing and investment decisions when firms have information that investors do not have”, Journal of Financial Economics 13 (2): 187–221.

4. Harvard Business Press Chapters (2003). Time Value of Money: Calculating the Real Value of Your Investment. Harvard Business School

5. Wall Street Journal/ Financial Times or some other financial newspaper.

 

Online sources:

Bloomberg (http://www.bloomberg.com/), which has a particularly good, comprehensive page on interest rates and bonds (http://www.bloomberg.com/markets/rates- bonds/government-bonds/us/)

CNN Money (http://money.cnn.com/), particularly if you prefer financial news in the video format (http://money.cnn.com/video/)

Financial Mirror ( http://www.financialmirror.com/) Financial Times (http://www.ft.com/home/europe)

Investopedia Dictionary (http://www.investopedia.com/dictionary/).

Yahoo!Finance (http://finance.yahoo.com/), which provides a great Stock Research Center (http://biz.yahoo.com/r/)