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Corporate Finance, 6 credits
Corporate Finance, 6 hp
TPPE17
Main field of study
Industrial Engineering and ManagementCourse level
First cycleCourse type
Programme courseExaminer
Ou TangDirector of studies or equivalent
Fredrik PerssonEducation components
Preliminary scheduled hours: 48 hRecommended self-study hours: 112 h
ECV = Elective / Compulsory / Voluntary
Main field of study
Industrial Engineering and ManagementCourse level
First cycleAdvancement level
G2XCourse 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
UPG1 Assignment 1 credits U, G TEN2 A written examination 5 credits U, 3, 4, 5 Grades
Four-grade scale, LiU, U, 3, 4, 5Other information
Supplementary courses:
Financial markets and instruments, Financial risk management, Financial valuation methodology, Portfolio management, Financial optimizationDepartment
Institutionen för ekonomisk och industriell utvecklingDirector of Studies or equivalent
Fredrik PerssonExaminer
Ou TangEducation components
Preliminary scheduled hours: 48 h
Recommended self-study hours: 112 hCourse literature
Additional literature
Books
- Berk, J. and DeMarzo, P., Corporate Finance (BD)
| Code | Name | Scope | Grading scale |
|---|---|---|---|
| UPG1 | Assignment | 1 credits | U, G |
| TEN2 | A written examination | 5 credits | U, 3, 4, 5 |
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.
Additional literature
Books
Berk, J. and DeMarzo, P., Corporate Finance (BD)
Note: The course matrix might contain more information in Swedish.
I = Introduce, U = Teach, A = Utilize
| I | U | A | Modules | Comment | ||
|---|---|---|---|---|---|---|
| 1. DISCIPLINARY KNOWLEDGE AND REASONING | ||||||
| 1.1 Knowledge of underlying mathematics and science (G1X level) |
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X
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TEN2
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| 1.2 Fundamental engineering knowledge (G1X level) |
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| 1.3 Further knowledge, methods, and tools in one or several subjects in engineering or natural science (G2X level) |
X
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X
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TEN2
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| 1.4 Advanced knowledge, methods, and tools in one or several subjects in engineering or natural sciences (A1X level) |
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| 1.5 Insight into current research and development work |
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| 2. PERSONAL AND PROFESSIONAL SKILLS AND ATTRIBUTES | ||||||
| 2.1 Analytical reasoning and problem solving |
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X
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TEN2
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| 2.2 Experimentation, investigation, and knowledge discovery |
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X
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X
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TEN2
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| 2.3 System thinking |
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X
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TEN2
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| 2.4 Attitudes, thought, and learning |
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X
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TEN2
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| 2.5 Ethics, equity, and other responsibilities |
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| 3. INTERPERSONAL SKILLS: TEAMWORK AND COMMUNICATION | ||||||
| 3.1 Teamwork |
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X
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UPG1
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| 3.2 Communications |
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| 3.3 Communication in foreign languages |
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X
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TEN2
UPG1
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| 4. CONCEIVING, DESIGNING, IMPLEMENTING AND OPERATING SYSTEMS IN THE ENTERPRISE, SOCIETAL AND ENVIRONMENTAL CONTEXT | ||||||
| 4.1 External, societal, and environmental context |
X
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X
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TEN2
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| 4.2 Enterprise and business context |
X
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X
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TEN2
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| 4.3 Conceiving, system engineering and management |
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| 4.4 Designing |
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| 4.5 Implementing |
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| 4.6 Operating |
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| 5. PLANNING, EXECUTION AND PRESENTATION OF RESEARCH DEVELOPMENT PROJECTS WITH RESPECT TO SCIENTIFIC AND SOCIETAL NEEDS AND REQUIREMENTS | ||||||
| 5.1 Societal conditions, including economic, social, and ecological aspects of sustainable development for knowledge development |
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| 5.2 Economic conditions for knowledge development |
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| 5.3 Identification of needs, structuring and planning of research or development projects |
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| 5.4 Execution of research or development projects |
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| 5.5 Presentation and evaluation of research or development projects |
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