Corporate Finance

llsms2100  2021-2022  Louvain-la-Neuve

Corporate Finance
5.00 credits
30.0 h
Q1
Teacher(s)
Nguyen Anh; Thewissen James;
Language
English
Prerequisites
  • Econometrics, Finance and Fundamental mathematical and statistical concepts. Concepts covered in courses such as the ones listed below should be known.
  • Econométrie [ LECGE1316 ]
  • Mathématiques en économie et gestion I [ LECGE1112 ]
  • Mathématiques en économie et gestion II [ LECGE1230 ]
  • Statistique en économie et gestion I [ LECGE1114 ]
  • Statistique en économie et gestion II [ LECGE1224 ]
  • Finance [ LECGE1332 ]
Main themes
The course will cover the following topics:
  • Portfolio theory
  • CAPM
  • APT
  • Market efficiency
  • Capital structure, dividends
  • Derivative products and Option pricing in discrete time
  • Real options analysis
Learning outcomes

At the end of this learning unit, the student is able to :

1 The goal of this course is to develop fundamental insights in corporate finance, i.e., in the financial management of corporations. After completing the course, the student is able to:
  • Evaluate and select investments and projects, value assets, and analyze and apply criteria to do this
  • Analyze the capital structure (financing decision) and pay-out policy of firms
  • Use formal models and methodologies that are covered in the course to achieve these objectives
  • Have a critical view on models and methodologies, and how to use them in practice
  • Understand the signals to identify firms in financial distress
  • Comprehend the rationale behind mergers and acquisitions
 
Content
The course will cover the following topics:
  • Market efficiency and investors’ behavior
  • Capital structure and payout policy
  • Advanced valuation techniques
  • Financial distress
  • Long-term financing
  • Mergers and acquisitions
Teaching methods
  • In-class lectures.
  • Online forums.
  • Teamwork assignments
Evaluation methods
Continuous evaluation
  • Date: before and after each course
  • Type of evaluation: tests, quizz, homeworks, use of Mylab, groupwork on Moodle.
  • The class is face-to-face. Please check ADE for the latest schedule.
  • Comments: Mylab/Finance is Compulsory for this course. The cost of the license is approx. 25 EUR per student. It is the responsibility of the student.
Evaluation week
  • Oral: No
  • Written: Yes - 2 hours 
  • The written examination represents 40% of the final mark. So, it is crucial for sucess to complete the Continuous Evaluation on time !!
  • The homework counts for 10% of the final grade.
  • The continuous evaluation counts for 50% of the final grade.
Bibliography
Slides based on the two main reference books of the course
READINGS :
  • Corporate Finance, Berk and DeMarzo, 5th Edition, Pearson
Faculty or entity
CLSM


Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Sigle
Credits
Prerequisites
Learning outcomes
Master [120] in Management
GEST2M
5
Master [120] in Actuarial Science
ACTU2M
5
Master [120] in Management [CEMS Programme]
GESM2M
5