MSc in Economics and Finance - Applied Economics and Finance
Corporate Finance and Derivatives
About the course
What you will learn
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The aim of the course is to provide students a thorough understanding of central issues in corporate finance and of models that are useful for analyzing such issues in a structured manner. At the end of the course, students should be able to:
- Analyze the profitability of corporate investment opportunities with the purpose of supporting capital budgeting decisions.
- Explain the different funding options for a firm at its different stages as it grows from a startup to a public company taking into account the possible funding sources and optimal capital structure decisions considering, e.g., tax effects and potential bankruptcy costs.
- Analyze the dividend policy of the firm.
- Analyze how corporate decisions are influenced by agency problems and explain how agency problems can be countered.
- Apply option pricing theory to analyze firms' capital structure, to price debt and equity, and to analyze investment opportunities.
- Analyze and value mergers and acquisitions proposals.