Corporate Finance, 7.5 credits

Main field of study

Course level

Advancement level

Course offered for

• Business and Economics Programme - International - Spanish
• Business and Economics Programme - International - German
• Business and Economics Programme - International - English
• Business and Economics Programme - International - French
• Master's Programme in Economics

Entry requirements

• Economics, basic course, 30 ECTS credits with at least 15 ECTS credits passed

Intended learning outcomes

On completion of the course, the student should be able to:
- account for financial theories and realia of the financial system, the actors and the main types of financial instruments that are used in the financial markets.
- account for the time value of money, the valuation of financial assets and financial risk management.

Course content

The course covers basic theory and realia about:
- The financial system, its organisation and its function.
- The actors, financial marketplaces and financial instruments.
- The financial problems of households and businesses.
- The time value of money/cash flows.
- Valuation of financial assets with a focus on requirements and shares.
- Risk management via portfolio diversification.
- Pricing of financial instruments (CAPM).
- Pricing of and risk management via futures contracts.
- Pricing of and risk management via option contracts.
- The company's capital structure.
- The company's dividend policy.

Teaching and working methods

The teaching takes the form of lectures, teaching sessions, project assignments and trading room laboratory. The students should also study independently.

Examination

The examination consists of:

• individual written examination, grading scale: UV
• project assignments, grading scale: UG

The final grade G requires G in all examinations. The final grade VG also requires VG in the individual written examination. Detailed information can be found in the study guide.

If special circumstances prevail, and if it is possible with consideration of the nature of the compulsory component, the examiner may decide to replace the compulsory component with another equivalent component.

If the LiU coordinator for students with disabilities has granted a student the right to an adapted examination for a written examination in an examination hall, the student has the right to it.

If the coordinator has recommended for the student an adapted examination or alternative form of examination, the examiner may grant this if the examiner assesses that it is possible, based on consideration of the course objectives.

An examiner may also decide that an adapted examination or alternative form of examination if the examiner assessed that special circumstances prevail, and the examiner assesses that it is possible while maintaining the objectives of the course.

Students failing an exam covering either the entire course or part of the course twice are entitled to have a new examiner appointed for the reexamination.

Students who have passed an examination may not retake it in order to improve their grades.

Grades

Other information

Planning and implementation of a course must take its starting point in the wording of the syllabus. The course evaluation included in each course must therefore take up the question how well the course agrees with the syllabus. 

The course is conducted in such a way that there are equal opportunities with regard to sex, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation and age.

If special circumstances prevail, the vice-chancellor may in a special decision specify the preconditions for temporary deviations from this course syllabus, and delegate the right to take such decisions.

About teaching and examination language

The teaching language is presented in the Overview tab for each course. The examination language relates to the teaching language as follows: 

• If teaching language is “Swedish”, the course as a whole could be given in Swedish, or partly, or as a whole, in English. Examination language is Swedish, but parts of the examination can be in English.
• If teaching language is “English”, the course as a whole is taught in English. Examination language is English.
• If teaching language is “Swedish/English”, the course as a whole will be taught in English if students without prior knowledge of the Swedish language participate. Examination language is Swedish or English depending on teaching language.

Department