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Studiegids

nl en

Advanced Financial Management

Vak
2015-2016

Tags

B&E

Admissions requirements

Introduction to Business and Entrepreneurship (offered in 2014-2015) and/or Financial Management.

Description

Advanced Financial Management is the second financial course in the minor business studies. The focus of the course is on corporate finance. Corporate finance is about the efficient attracting and investing of corporate funds. A major issue is the trade-off between risk and return. Analysis of investments is done with the use of particular investment appraisal techniques. An important issue is the identification of the appropriate cash flows. Furthermore, the funding of the corporation is studied, to start with the cost of capital. Different types of equity financing will be discussed, as well as the capital structure of equity and debt financing. The causes and effects of the credit crisis are integrated in the topics that are related to the financial markets.

Week 1: Intro + Financial Markets and Banks
Week 2: Investment Appraisals
Week 3: Project analysis
Week 4: Cost of capital
Week 5: Financing of a Corporation
Week 6: Capital Structure, Mergers and Acquisitions
Week 7: Risk Management

Course objectives

  • To gain knowledge and skills in corporate finance and the links with other topics in business studies, with regard to the topics of investment and project appraisals, capital structure, cost of capital and mergers and acquisitions.

  • To understand the different perspectives on corporate finance (investors, managers and intermediaries).

  • To understand how financial markets function.

  • To understand the causes and effects of the credit crisis, and the latest developments in the financial markets.

  • Able to solve corporate finance cases

  • Able to read, interpret, summarize and criticize scientific articles about corporate finance and financial markets.

Timetable

Once available, timetables will be published here.

Mode of instruction

The classes are taught with a combination of instruction, group-wise solving of practical and theoretical problems with exercises and much discussion on the links between theory and practical issues in corporate finance. Students are expected to actively participate in finding solutions to exercises and in the discussions.

Class instruction is done with the use of PowerPoint sheets and multimedia martial on course contents and recent developments in the financial markets.
Assessments are done with exams and written assignments. These are all individual.

Assessment

Mid-term exam, 20%;
Case study (written assignment),20%;
Short analysis of scientific article (written assignment, list of articles to be provided on Blackboar), 20%;
Final exam, 40%.

Blackboard

There will be a Blackboard site available for this course. Students will be enrolled at least one week before the start of classes.

Reading list

Brealey, R.A., S.C. Myers, A.J. Marcus, Fundamentals of Corporate Finance, McGraw-Hill, 7th international edition, ISBN 9780071314749

Registration

This course is open to LUC students and LUC exchange students. Registration is coordinated by the Curriculum Coordinator. Interested non-LUC students should contact course.administration@luc.leidenuniv.nl.

Contact

Dr. R.P. Orij, r.p.orij@law.leidenuniv.nl

Remarks

Read before first session: Brealey/Myers/Marcus chapters 1 and 2, reader week 1, which is about banking.