Course description

Finance II

Introduction

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Course content

Part I: Financing

  • Long Term Financing
  • Debt or Equity?
  • Capital Budgeting: APV
  • Dividend Policy

Part II: Topics in finance

  • Leasing
  • Issuing Securities
  • Derivatives and Risk Management
  • Merger and Acquisition Strategy

Learning outcome knowledge

Upon completion of the course, students are required to master tasks such as:

  • The capital structure decision; how corporations are financed and how they pay out dividends.
  • Why capital structure decisions cannot impact valuation in perfect markets.
  • Market efficiency and why efficiency in financial markets is important for these decisions.
  • How to issue new debt and equity, and the choice between these two alternatives.
  • Computing how taxes and other impediments to perfect markets influence firms' cost of capital.
  • The decision of whether to buy or lease-
  • Computing option-derived valuations of corporate debt and equity.
  • Computing gains and costs from corporate financial management.
  • The gains and losses from merger and acquisition activity.
  • Risk management and issues in international finance.

Exam organisation

  • Written exam: 100%