Financial management is the subject which deals with both sides of the corporate balance sheet: which projects should a corporation take on and what is the best way to finance them? In Financial management we study how corporation’s take investment decisions, but especially how they should take them. What return should a corporation make on its investments? How do you value options in an investment project? How do you deal with risk in an investment project? How do you value an asset or a corporation? If a project is worthwhile, in an efficient capital market a corporation should always be able to find funding for it. Are capital markets efficient? How do you value bonds and stocks? Does it matter how much dividend a corporation pays out to its shareholder? Are hostile takeovers a good or a bad thing? In this course we will focus on the big questions in corporate finance.
By the end of this course, the student should be able to:
1. use the basic techniques for investment evaluation
2. ink the major debates in corporate finance to real life cases
3. have a real understanding of the major debates in corporate finance:
- Utilize time value of money (based on i.e. NPV and IRR) and financial statement analysis in capital budgeting decision making; Discuss the impact of risk on cost of capital; Estimate the intrinsic value of investment securities and determine whether or not they should be purchased given the current market price; Discuss the benefits and disadvantages of selecting debt or equity to finance corporate activities.
The most updated version of the schedules can be found on the Leiden University student website
Mode of instruction
3 hours interactive lectures, presentations and discussions every week, 6 weeks long.
Active Participation (25%)
Presentations/Cases Studies (25%)
Final (written) Exam (50%)
In order to pass students must have a total grade of at least a 6 (six).
Brigham/Ehrhardt/Fox, Financial Management : Theory and Practice - 9781473729605
Signing up for classes and exams
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There is only limited capacity for external students. Please contact the programme Coordinator
Programme Coordinator: [ms. Esme Caubo] (mailto:firstname.lastname@example.org)