Corporate Finance, 6 credits (TPPE17)

Corporate Finance, 6 hp

Main field of study

Industrial Engineering and Management

Level

First cycle

Course type

Programme course

Examiner

Ou Tang

Director of studies or equivalent

Fredrik Persson
Course offered for Semester Period Timetable module Language Campus VOF
6MMAT Mathematics, Master's Programme 1 (Autumn 2017) 1 4 English Linköping v
6MMAT Mathematics, Master's Programme (Modelling and Optimization in Economics) 1 (Autumn 2017) 1 4 English Linköping v
6KMAT Mathematics 5 (Autumn 2017) 1 4 English Linköping v
6KMAT Mathematics (Modelling and Optimization in Economics) 5 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - French (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - French 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Japanese (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Japanese 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Spanish (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Spanish 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - German (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - German 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Chinese (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIEI Industrial Engineering and Management - International, M Sc in Engineering - Chinese 7 (Autumn 2017) 1 4 English Linköping v
6CIII Industrial Engineering and Management, M Sc in Engineering (Master Profile Finance) 7 (Autumn 2017) 1 4 English Linköping v
6CIII Industrial Engineering and Management, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYI Applied Physics and Electrical Engineering - International, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o
6CYYY Applied Physics and Electrical Engineering, M Sc in Engineering 7 (Autumn 2017) 1 4 English Linköping v
6CYYY Applied Physics and Electrical Engineering, M Sc in Engineering (Financial Mathematics) 7 (Autumn 2017) 1 4 English Linköping o

Main field of study

Industrial Engineering and Management

Course level

First cycle

Advancement level

G2X

Course offered for

  • Mathematics, Master's Programme
  • Mathematics
  • Industrial Engineering and Management - International, M Sc in Engineering
  • Industrial Engineering and Management, M Sc in Engineering
  • Applied Physics and Electrical Engineering - International, M Sc in Engineering
  • Applied Physics and Electrical Engineering, M Sc in Engineering

Specific information

The course is not available for exchange students

Entry requirements

Note: Admission requirements for non-programme students usually also include admission requirements for the programme and threshold requirements for progression within the programme, or corresponding.

Prerequisites

Basic knowledge in accounting, optimisation, probability theory and statistics.

Intended learning outcomes

Having completed the course the student should:

  • have knowledge about the trade-offs that guide companies in their choice of capital structure and dividend policy
  • be able to use the net-present-value technoque in capital budgeting and poject appraisals
  • be able to determine appropriate, risk-adjusted costs of capital for companies and projects, with respect to financing sources and tax considerations
  • have knowledge about the characteristics of basic derivative securities and be able to use the Black-Scholes Model to value options

Course content

  • Net present value methodology
  • Portfolio theory
  • Capital market equilibrium models (primarily CAPM)
  • Dividend- and capital-structure policy
  • Risk-adjusted costs of capital
  • Company valuation
  • Valuation of loans and financial leases
  • Futures and options contracts

Teaching and working methods

The theory is presented during lectures and in tutorial classes.

Examination

TEN2A written examinationU, 3, 4, 55 credits
UPG1AssignmentU, G1 credits

Grades

Four-grade scale, LiU, U, 3, 4, 5

Other information

Supplementary courses:
Financial markets and instruments, Financial risk management, Financial valuation methodology, Portfolio management, Financial optimization

Department

Institutionen för ekonomisk och industriell utveckling

Director of Studies or equivalent

Fredrik Persson

Examiner

Ou Tang

Education components

Preliminary scheduled hours: 48 h
Recommended self-study hours: 112 h

Course literature

Additional literature

Books
Berk, J. and DeMarzo, P., Corporate Finance (BD)

Additional literature

Books

Berk, J. and DeMarzo, P., Corporate Finance (BD)
TEN2 A written examination U, 3, 4, 5 5 credits
UPG1 Assignment U, G 1 credits

Regulations (apply to LiU in its entirety)

The university is a government agency whose operations are regulated by legislation and ordinances, which include the Higher Education Act and the Higher Education Ordinance. In addition to legislation and ordinances, operations are subject to several policy documents. The Linköping University rule book collects currently valid decisions of a regulatory nature taken by the university board, the vice-chancellor and faculty/department boards.

LiU’s rule book for education at first-cycle and second-cycle levels is available at http://styrdokument.liu.se/Regelsamling/Innehall/Utbildning_pa_grund-_och_avancerad_niva. 

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