Advanced Corporate Finance for Accounting en Control

URL study guide

https://studiegids.vu.nl/en/courses/2024-2025/E_PTACC_ACF

Course Objective

This course is an advanced course in Corporate Finance. This course has three main learning objectives. 1. Extending academic/ professional knowledge in Corporate Finance: learning about academic concepts in Corporate Finance (Bridging Theory and Practice
- Knowledge). 2. Understanding the origin and empirical strength of academic concepts in Corporate Finance (Academic Skills) . 3. Applying academic concepts in Corporate Finance in real life cases: confrontation of academic concepts in Corporate Finance with real life situations (Bridging Theory and Practice
- Application). After following this course, you:
- Understand Corporate Finance academic concepts, including their strengths and limitations in application in Corporate Finance practice.
- Are able to apply these basic concepts in real life cases (professional practice), i.e. being able to choose between various concepts. More specific learning objectives for the working classes and case solving are:
- Ability to analyze and solve real life cases in Corporate Finance.
- Being able to report on a case in Corporate Finance.

Course Content

Corporate Finance discipline is about matching companies’ assets withinvestor’s preferences. It has both a micro perspective on CFO decisionmaking and a macro perspective on the functioning of Corporate Financial Markets. This course gives an overview of academic knowledge in corporate finance relevant for corporate finance professionals. As this course is an advanced course most relevant theories will be briefly reviewed. Specific attention is given to the application of corporate finance theories in practice: do assumptions hold? Which theory fits best in which specific circumstances? Main topics in this advanced course are:
- Understanding differences in company capital structure
- Company decision on capital structure
- Pay out decision (dividends, share buy backs)
- Relevance of risk management in corporate finance
- Characteristics of debt and equity
- Assessing credit quality of companies
- Understanding cost of capital
- Applying equity valuation techniques
- Pillars of corporate governance

Teaching Methods

Lectures

Method of Assessment

Exam and group assignment

Literature

Berk and DeMarzo
- Corporate Finance
- 5th Edition

Entry Requirements

This advanced course is elaborating on standard classical text books like Corporate Finance (Berk and DeMarzo) and Principles of Corporate Finance (Brealey, Myers and Allen). Students are expected to be familiar with chapters in these books on capital structure, payout policy, cost of capital, CAPM, capital budgeting, time value of money, option valuation, working capital management. These chapters mark the entry knowledge level of this course. Students not very familiar with these books are advised to have a look at these books or even buy it for (required) background knowledge needed in this course.