Gradu­ate Cor­por­ate Fin­ance

About

This course covers firms' financial decisions, as in most cases they are at least as important as the operational decisions, for the success of these firms.
The first part of the course focuses on evaluating projects and estimating value of firms using the DCF method, along with understanding the differences between economic (or incremental) value and accounting value.
In the second part we explore the discount rate, used in the evaluation of firms: how it is calculated and its link to firms' risk.
The third part deals with capital structure, the tension between equity and debt. Specifically, we learn about raising money, payout policy, bankruptcy, and agency problems such as under investing and risk shifting.

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:

Evaluate a firm/project, distinguish between accounting value, economic value and incremental value.

Using the theory related to risk and return, explain and show how risk affects the cost of capital.

Calculate the WACC by analyzing the risks involved in each component of the firm.

Know the different objectives of equity holders and debt holders, as well as the agency problems they imply.

Analyze the effect of leverage on bankruptcy risk, required return, yield spread and firms' choices.

Show the impact of performance-based compensation and its influence on firms and employees

Course leader

Carsten Sørensen - Department of Finance (FI)

Target group

This is a graduate level course. CBS Summer University courses at Copenhagen Business School is open to all and welcomes domestic and international students as well as professionals

Fee info