BEC22806 – Summary of Corporate Financial Management
Book Hillier et al. Corporate Finance. 4th European Edition.
,Table of Contents
Week 1................................................................................................................................................. 3
Lecture 1 Wednesday 28 October 2020 ; Chapter 1 until 3 ............................................................ 3
Lecture 2 – Friday 30 October 2020 ; Chapter 4 & Chapter 5 ....................................................... 13
Week 2............................................................................................................................................... 23
Practical 1 – Monday 2 November 2020 ....................................................................................... 23
Lecture 1 - Wednesday 4 November 2020 ; Chapter 6 & 7........................................................... 26
Assignment 1 – Thursday 5 November 2020................................................................................. 41
Lecture 2 – Friday 6 November 2020 ; Chapter 8 & 10 ................................................................. 44
Week 3............................................................................................................................................... 56
Practicum 2 Monday 9 November 2020........................................................................................ 56
Lecture 1 Wednesday 11 November 2020 ; Chapter 12 + 15 ....................................................... 60
Assignment 2 Thursday 12 November 2020 ................................................................................. 72
Lecture 2 Friday 13 November 2020 ; Chapter 16 & 18 ................................................................ 76
Week 4............................................................................................................................................... 84
Practicum 3 – Monday 16 November 2020................................................................................... 84
Lecture 1 Wednesday 18 November 2020 ; Chapter 22 ............................................................... 87
Assignment 3 Thursday 19 November 2020 ................................................................................. 97
Lecture 2 Friday 20 November 2020 ; Chapter 24 & 25 .............................................................. 101
Week 5............................................................................................................................................. 113
Practicum 4 – Monday 23 November 2020................................................................................. 113
Lecture 1 – Wednesday 25 November 2020 ; Chapter 19 & 20 .................................................. 120
Assignment 4 – Thursday 26 November 2020 ............................................................................ 131
Lecture 2 – Wednesday 27 November 2020 ; Chapter 26 .......................................................... 135
,Week 1
Lecture 1 Wednesday 28 October 2020 ; Chapter 1 until 3
Part 1 – Introduction
Frederic Ang () and Julia Höhler (julia.hö) are the teachers this period.
Corporate financial management is everywhere in the world > a lot of
things are going on.
Studying corporate financial management is needed for future
employment >
- Banks – management trainee > you should know how
companies are financed and how they make certain decisions.
- Insurance companies
- Future work in company: make decisions on financing
- Own company?
In the lectures, the theory is explained. In the 6th week, there are no
lectures.
Practical sessions starts on Monday 2 November 2020 > going about
the lectures
Assessments > earn a bonus point ; individual exercise -> you have to
submit it individually, but can do this with more people. Assessment
go about material of week 1 and the practical of Monday.
Assignments for practical sessions are distributed through
Brightspace.
Monday-afternoon
➢ Week 2 - 15.50-17.20/17.40-19.10
➢ Week 3-6 14.00-15.30/15.50-17.20
There are 5 assessment > per assessment 0.2 credit per week through
assessment.
Quiz on Brightspace which works perfectly well (between 14.00-17.00)
> 3 hours to solve the questions.
You can do the assessment individually or in teamwork > individual submission.
, Assessments are hard to get the full bonus > be aware that
it is hard and so you have to study this.
Bonus grade is clearly positively associated with the raw
exam score without bonus.
Studying the assessments give you a good view about the
exam.
How better and more you study for the bonus assessment,
how higher the raw exam grade.
Stock market game > you are going to invest on the stock market.
You apply the knowledge to a real live situation > simulating the
corporate financial management method.
Website of the stock market game is based on the US market > game
needed to make a report.
Stock market game is in groups of 4 students trade in shares on the US
stock market.
Aim to maximize profit from trade in stocks.
Receive a maximum of 0.5 credit for the report > criteria for evaluation
are explained in the rules of the game.
You should look on Brightspace, you can put yourselves in a group.
You can earn virtual money by trading in shares at the US stock
market.
Investing in stocks means >
- Earn dividends
- Benefit from an increase of the value of share
Value share = expectations of future return on equity or risk (volatility of price)
Look at the correlations between each aspects > take into account the
phenomenon’s which are explained during the lectures for writing the report.
Book Hillier et al. Corporate Finance. 4th European Edition.
,Table of Contents
Week 1................................................................................................................................................. 3
Lecture 1 Wednesday 28 October 2020 ; Chapter 1 until 3 ............................................................ 3
Lecture 2 – Friday 30 October 2020 ; Chapter 4 & Chapter 5 ....................................................... 13
Week 2............................................................................................................................................... 23
Practical 1 – Monday 2 November 2020 ....................................................................................... 23
Lecture 1 - Wednesday 4 November 2020 ; Chapter 6 & 7........................................................... 26
Assignment 1 – Thursday 5 November 2020................................................................................. 41
Lecture 2 – Friday 6 November 2020 ; Chapter 8 & 10 ................................................................. 44
Week 3............................................................................................................................................... 56
Practicum 2 Monday 9 November 2020........................................................................................ 56
Lecture 1 Wednesday 11 November 2020 ; Chapter 12 + 15 ....................................................... 60
Assignment 2 Thursday 12 November 2020 ................................................................................. 72
Lecture 2 Friday 13 November 2020 ; Chapter 16 & 18 ................................................................ 76
Week 4............................................................................................................................................... 84
Practicum 3 – Monday 16 November 2020................................................................................... 84
Lecture 1 Wednesday 18 November 2020 ; Chapter 22 ............................................................... 87
Assignment 3 Thursday 19 November 2020 ................................................................................. 97
Lecture 2 Friday 20 November 2020 ; Chapter 24 & 25 .............................................................. 101
Week 5............................................................................................................................................. 113
Practicum 4 – Monday 23 November 2020................................................................................. 113
Lecture 1 – Wednesday 25 November 2020 ; Chapter 19 & 20 .................................................. 120
Assignment 4 – Thursday 26 November 2020 ............................................................................ 131
Lecture 2 – Wednesday 27 November 2020 ; Chapter 26 .......................................................... 135
,Week 1
Lecture 1 Wednesday 28 October 2020 ; Chapter 1 until 3
Part 1 – Introduction
Frederic Ang () and Julia Höhler (julia.hö) are the teachers this period.
Corporate financial management is everywhere in the world > a lot of
things are going on.
Studying corporate financial management is needed for future
employment >
- Banks – management trainee > you should know how
companies are financed and how they make certain decisions.
- Insurance companies
- Future work in company: make decisions on financing
- Own company?
In the lectures, the theory is explained. In the 6th week, there are no
lectures.
Practical sessions starts on Monday 2 November 2020 > going about
the lectures
Assessments > earn a bonus point ; individual exercise -> you have to
submit it individually, but can do this with more people. Assessment
go about material of week 1 and the practical of Monday.
Assignments for practical sessions are distributed through
Brightspace.
Monday-afternoon
➢ Week 2 - 15.50-17.20/17.40-19.10
➢ Week 3-6 14.00-15.30/15.50-17.20
There are 5 assessment > per assessment 0.2 credit per week through
assessment.
Quiz on Brightspace which works perfectly well (between 14.00-17.00)
> 3 hours to solve the questions.
You can do the assessment individually or in teamwork > individual submission.
, Assessments are hard to get the full bonus > be aware that
it is hard and so you have to study this.
Bonus grade is clearly positively associated with the raw
exam score without bonus.
Studying the assessments give you a good view about the
exam.
How better and more you study for the bonus assessment,
how higher the raw exam grade.
Stock market game > you are going to invest on the stock market.
You apply the knowledge to a real live situation > simulating the
corporate financial management method.
Website of the stock market game is based on the US market > game
needed to make a report.
Stock market game is in groups of 4 students trade in shares on the US
stock market.
Aim to maximize profit from trade in stocks.
Receive a maximum of 0.5 credit for the report > criteria for evaluation
are explained in the rules of the game.
You should look on Brightspace, you can put yourselves in a group.
You can earn virtual money by trading in shares at the US stock
market.
Investing in stocks means >
- Earn dividends
- Benefit from an increase of the value of share
Value share = expectations of future return on equity or risk (volatility of price)
Look at the correlations between each aspects > take into account the
phenomenon’s which are explained during the lectures for writing the report.
