FIN-A0103 – Fundamentals of Corporate Finance

Syllabus 2022

*** Subject to change ***

Updated September 1, 2022

Course objective. This course introduces the fundamental tools used in corporate
financial decision-making. After completing this course, the students have the skills and
knowledge to select and effectively apply techniques for valuing firms and comparing
investment opportunities, evaluate possible methods of raising capital, evaluate the
optimal capital structure of the firm, and understand the functioning of financial markets,
and how the market prices of financial assets relate to the cost of capital of firms.
Prerequisites. No formal prerequisites. This is a mandatory course in the Minor in
Finance program.
Instructor. Lecturer Joni Kokkonen, DSc.
Material. Textbook: Berk & DeMarzo, Corporate Finance, Pearson, 3rd edition or newer.
Lecture slides and additional material distributed during the course.
Lectures. Lectures will be held on Wednesdays (8:15 – 10:00) and Fridays (13:15-15:00).
The first lecture is on September 7 and the last one on October 14.
Grading. The course grade consists of the following components:
• Assignments, 30%
• Exam, 70%.
In order to pass the course, a student needs to achieve a minimum of 40% of the points
in the exam and a minimum of 50% of the points for the exam and assignments combined.
Grade scale.

Total Points Final Grade

0-49 0 (Fail)

50-59 1

60-69 2

70-79 3

80-89 4

90-100 5
Exams. The closed-book exam covers all the course material. Exam schedule is available
on Sisu. Remember to register for the exam.
Scholastic honesty. Adherence to highest standards of scholastic honesty is expected.
Examples of scholastic dishonesty are collaboration between coursework groups,
presenting coursework answers downloaded from the internet as own work without
proper citation, and sharing answers during an exam. Any violations are taken very
seriously.

Course schedule.

Book
Date Topic chapter
September 7 Overview and introduction to corporate finance
September 9 Time value of money and basic concepts 4
September 14 How corporations issue securities 23, 24
September 16 Pricing of risk and the cost of capital 10-12
September 21 Capital budgeting 7, 8, 18
September 23 Capital structure 1 14-16
September 28 Capital structure 2 14-16
September 30 Payout policy 17
October 5 Mergers and acquisitions 28
October 7 Corporate governance 29
October 12 Short-term financing 26, 27
October 14 Risk management 30

October 20 Exam
December 16 Retake exam