Advanced Course in Corporate Finance, 5 cr

The goals are that students - after having completed the course activities – be able to demonstrate:

Knowledge:

• Display solid knowledge of payout policy.
• Display solid knowledge of real options.
• Display solid knowledge of long-term financing in the form of equity financing, debt financing and leasing.
• Display solid knowledge of short-term financing in the form of working capital management and financing of short-term cash needs.
• Display solid knowledge of the role of corporate governance mechanisms in overcoming agency problems.
• Display solid knowledge of agency costs in corporate finance, the investment distortions causes by the agency costs and how to alleviate them.

Skills:

• Explain common ways to raise equity capital, including IPOs and SEOs, and understand associated market reactions.
• Explain different forms of debt financing, including key contractual features such as debt covenants and repayment provisions.
• Explain leasing as a vehicle of financing and analyze the leasing versus buying decision.
• Explain the economic rationale for mergers and acquisitions, market reactions to takeovers, and key aspects of the takeover process.
• Explain the possible investment distortions caused by conflicts of interest between equity holders and debt holders
• Explain what a creditable signal from the manager to outside investors is
• Explain the event study method and its implementations.