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Course module: 323061-B-6
323061-B-6
Finance for Pre-master
Course info
Course module323061-B-6
Credits (ECTS)6
CategoryBA (Bachelor)
Course typeCourse
Language of instructionEnglish
Offered byTilburg University; Tilburg School of Economics and Management; TiSEM: Finance; Finance;
Is part of
M Strategic Management
M International Management
PM Tax Economics HBO
PM International Business Taxation: Economics HBO
PM Accountancy HBO
PM Strategic Management HBO
PM Finance HBO
PM International Management HBO
Convenant TISEM
Lecturer(s)
Lecturer
dr. M.F. Boons
Other course modules lecturer
Lecturer
dr. J.A. Crego
Other course modules lecturer
Lecturer
dr. A.H.F. Verboven
Other course modules lecturer
Academic year2020
Starting block
SM 1
Course mode
Full-time
RemarksCaution: this information is subject to change
Registration openfrom 25/08/2020 up to and including 20/08/2021
Aims
In the course Finance for Premasters students will be introduced to the main concepts of modern corporate finance. After successful completion of this course, students will be able to:
 
Calculate the value of a risky asset using the Law of One Price.
 
Evaluate the profitability of a risky investment using the Net Present Value method.
 
Explain the three Modigliani-Miller propositions.
 
Select the optimal mix of debt and equity financing and the most convenient way to compensate shareholders.
 
Compare different long- and short-term financing instruments.
 
Compute the price of options.
 
Analyze mergers & acquisitions.
 
Identify the risks born by the firm and calculate the break-even premium.
Content
This course starts with an introduction to the concepts of time value of money and the evaluation of risk, and their role regarding valuation. To implement these concepts we will use the Net Present Value method for which we need two ingredients: cash flows and cost of capital. How to identify the former through various alternatives and how to compute the latter using the Capital Asset Pricing Model complete the first part of the course. The second part of the course focuses on the capital structure, that is, how the financing decisions of the firm affect its value. This topic leads to an introduction to financial derivatives and their relationship to debt and equity. Finally, the course considers some special topics in corporate finance: mergers and acquisitions, and risk management.


Assessment
The midterm exam and final exam each count for 37.5% for the final grade. The average grade of both exams should be greater than or equal to 5.0; otherwise, each exam will count for 50%. The research assignment counts for 25% for the final grade unless the average of both exams is below 5.0, in this latter case, assignments would not count. It is not possible to ‘repeat’ the research assignment. Their grades remain valid for the entire academic year. Therefore, for those students that take the Resit exam, it counts for 75% (+25% from the two research assignments) in the final grades if the grade of the exam exceeds 5.0; otherwise, it counts 100%.
The midterm exam covers BD chapters 3,4,5,6,9,10,11,12,28,30. The final exam covers BD chapters 14,15,16,20, 21, 23, 24, 25. Chapters 17 and 18 are assessed in the assignment.
There will be 20 quizzes in Canvas. 0.25 pts will be added to your grade if you pass 7 out of the 10 quizzes of the first part within the week they are posted, and another 0.25 if you pass 7 out of 10 quizzes of the second part within the week they are posted.
Contact person
dr. J.A. Crego
Timetable information
Finance for Pre-master
Written test opportunities
DescriptionTestBlockOpportunityDate
Written test opportunities (HIST)
DescriptionTestBlockOpportunityDate
Midterm / MidtermMIDTERM_01SM 1120-10-2020
Written 1 (37,5%) / Written 1 (37,5%)EXAM_01SM 1111-12-2020
Written 2 (37,5%) / Written 2 (37,5%)EXAM_02SM 1112-01-2021
Required materials
Literature
-
Title: Corporate Finance
Author:Berk, J. and P. DeMarzo
Publisher:Pearson International
Edition:5
Recommended materials
-
Tests
Assignment (25%)

Written 1 (37,5%)

Written 2 (37,5%)

Midterm

Final grade

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Kies de Nederlandse taal