code: A2331      studiebelasting: 3 sp      periode: sem. 1
naam: Finance 2
internet: homepage, rooster
opleiding/fase: econ/d23/profiel, econ/d123 (deeltijd)/profiel, fiscaal/d23, i&e/jaar 3&4 (oud)/mesor
voertaal: English
docent(en): dr. W.G.P.M. Hallerbach, e.a.
contactpersoon: dr. W.G.P.M. Hallerbach
secretariaat: A&F/FinInv
aanmelding: -
toelatingseisen: geen keuzevak voor studenten Econometrie
aanbevolen: -
onderwijsvorm: hoorcollege, 2 uur per week;
tevens avondonderwijs
tentamenvorm: schriftelijk, gesloten boek tentamen
tentamenperiode: december/januari, augustus (herkansing)
tentameneisen: -
tentamenstof: collegestof + verplichte literatuur

Objective

The goal of the course Finance 2 is to conclude the compulsory part of the curriculum Finance and Investment. Building on A2330 - Financiering & Belegging 1, additional financial key issues are analyzed in depth according to theoretical and practical relevance.

Content

Attention is paid to:

Capital budgeting: the analysis, evaluation and valuation of capital investment projects, with special attention devoted to options that are embedded in investment projects (real options).

Option pricing theory: the use of options and their valuation (binomial model and Black & Scholes model) is studied. Option theory is also applied to the analysis and (e)valuation of warrants and convertibles.

Financial risk management: the general application of derivatives (options, forwards, futures and swaps) in financial risk management and hedging.

Interaction between financing and investment decision is discussed, culminating in cash management, financial planning and the analysis of financial performance.

Mergers and acquisitions: motives and valuation.

International financial management: international financial markets, international parity relationships, and financing and investment decisions in an international environment.

Required Literature

Brealey, R. and S. Myers, Principles of Corporate Finance, 6th edition, 2000, McGraw Hill

 29-1-2002