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Summary Corporate Finance Erasmus
Do you need a
summary Corporate Finance International Business Administration Erasmus
University Rotterdam EUR? With this summary your exam will be a piece of cake!
“Hours and hours of studying in the library for
your Corporate Finance exam. So many difficult subjects at once. I am
completely overwhelmed by it.”
Does this line of thought seem familiar? If so, you’re in luck. Because Reken Maar Summaries has the solution for you.
The course Corporate Finance BT2107 is considered one of the hardest in the whole bachelor International Business Administration at Erasmus University EUR, maybe you even experienced this yourself. Subjects like computing the optimal capital structure, valuing companies or calculating the value of an option are broadly considered difficult among students. Do you want to pass your exam Corporate Finance at Erasmus University EUR? Get started right away with the summary Corporate Finance at Erasmus University EUR. Below you can read what to expect from your exam and how to solve the problems you will face during this course: we give you some inside info.
Do you want to pass Corporate Finance at Erasmus University EUR with an amazing grade? Then click here to order your summary Corporate Finance!
Do you want to learn more about Corporate Finance or do you want to get a short introduction in the core subjects of this course? Down below you can read what to expect of this difficult course.
Summary Corporate Finance Erasmus University Rotterdam: Core Concepts
In the Corporate Finance summary, which you can order over here, the core concepts will be explained on the basis of useful and easy examples. Since you already followed the year one course Finance some of the subjects might be a little familiar. Corporate Finance builds further on the basics of the year one course Finance.
In this article we will discuss the following core concepts. If you master the following concepts, you will have a great foundation for your Corporate Finance exam.
· Core Concept 1: Capital Structure
· Core Concept 2: Dividend Policy
· Core Concept 3: Derivatives and Options
· Core Concept 4: Long-term financing
· Core Concept 5: Valuations of firms with debt
Down below we will discuss these concepts with you.
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Core Concept 1: Capital Structure
It is crucial for companies to create the optimal capital structure; therefore, it is very important you learn how to compute this optimal mix between equity and debt. This subject will be clearly explained in the summary Corporate Finance Erasmus University Rotterdam EUR. Does this firm have a ‘levered’ capital structure or an ‘unlevered’ one? How do I calculate the ‘equity beta’? How do I calculate the ‘return on equity’? These are all question that will be answered in the summary of Reken Maar. Additionally, there will be roadmap to guide you through question about the optimal capital structure.
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Core Concept 2: Dividend Policy
The dividend policy of companies can diver quite a lot. Does the firm pay-out the full profit? Our do they buy back some shares? These kinds of decisions have great impact on the financial situation and overall value of the firm and are therefore very important within the course of Corporate Finance. All the different options are explained extensive in the summary Corporate Finance Erasmus University EUR. Couple of these concepts that are being explained are:
· Homemade dividends
· Stock split
· Reverse split
· Dividend calculations
The summary contains a diverse range of practice exercises to familiarize yourself with all the different options regarding the dividend policy.
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Core Concept 3: Derivatives and Options
The subject matter on derivatives and options is considered as one the hardest subjects in the course Corporate Finance. Mainly the difficult terminology causes a lot of students to get nervous as soon as they read an exam question with terms like ‘short call option’ and ‘long put option’. But once you practice enough with these terms and you familiarize yourself with all these terms the subject matter is not all that challenging anymore. With this subject preparation is key! In the summary Corporate Finance Erasmus University Rotterdam EUR all the terms are clearly explained and easy to follow examples are used to clarify the subject. With the summary of Reken Maar you won’t get any nerves when seeing these difficult terms!
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Core Concept 4: Long-term financing
Corporate finance is all about financing firms or their operations, this is why long-term financing is an important subject in this course. As discussed earlier in the core concept of capital structure, the ratio between equity and debt is very important for a firm. With long-term financing you can make the decision between more equity or creating more debt for the company. Additionally, there are some different forms of financing a firm or their operations. Does the firm choose to issue bonds? And how do you calculate de price of these bonds in different situations? Or do they issue more shares? And what are the effects of these decisions? These types of questions are to be expected when financing a firm or their operations. The Corporate Finance Erasmus University EUR summary will help you with a clear explanation for these kinds of questions. Subject like calculating the prices of bonds are explained with recognizable examples and appropriate practice questions.
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Core Concept 5: Valuations of firms with debt
Not only the financing of a firm and their operations is important in Corporate Finance but to calculate the value of firms just as much. Until now we discussed four core concepts of this course all these concepts had an effect on the value of the firm and are therefore connected to this concept. During your exam you will get assigned the task to calculate the value of firms with debt. There are three different methods for the valuations of companies:
· WACC method
· ‘Adjusted Present Value’ (APV) method
· ‘Flow-to-equity’ (FTE) method
Which method should I use for this question? En how do I calculate the value of a company with all these numbers stated in the question? This subject is normally considered among the hard ones with difficult terms and calculations. Let’s take a look at an example question.
The levered firm Bode NV generates an EBIT of $2,500 in perpetuity, of which the first cash flow is realised in exactly one year from now (on t=1). The firm has a debt with nominal and market value of $10,000. The cost of debt is 5% a year before taxes and the levered equity cost is 15% a year. The firm pays 25% taxes. Assume the firm has a constant debt-equity ratio. What is the market value of this firm according to the flow-to-equity method?
The answer to this practice question is $20,000. Do you want to know how the calculation of this question works? Or do you want to see more exercises about valuation of firms with debt? Order your summary Corporate Finance Erasmus University EUR over here!
Summary Corporate Finance Erasmus Rotterdam: Structure of the Exam
They exam will be a mix of pure theory and calculations on different subjects. For this course practice makes perfect. The Corporate Finance Erasmus University EUR summary consists of lots of example question, practice exercises, old exam questions and practice exams. While making these exercises you will get a good feel for the real exam and therefore you will not be surprised by any questions. You will get a formula sheet in advance of the exam to help you calculate some question, but this course consists of a lot of different formulas which are not all listed in the sheet you will get during your exam. In the Corporate Finance Erasmus University EUR summary, you will get a good overview of all the formulas and which one you will actually have on your formula sheet and which you won’t get. The summary contains both the formula sheet you will get and a formula sheet with all the formulas you need to learn yourself. In this way we helped you create an easy cheat sheet, only thing you need to do is memorize all these formulas.
Summary Corporate Finance Erasmus Rotterdam, everything you need to pass
As you have seen by now this course is not the easiest to pass. The course consists of a hard mix between terminologies and subjects with a lot of calculations, so you both need your academic thinking as well as your math skills to pass this course. With the Corporate Finance Erasmus University EUR summary from Reken Maar you have everything you need to turn this course into a success. Every subject gets touched upon and all subject are easily explained with clear examples and practice exercises to prepare you for your exam and the question to come.
The summary of Reken Maar will be your best buddy during this course. Order your summary over here. On behalf of the whole Reken Maar team we wish you all the best with the preparations and best of luck with your exam!
Interested in Finance? What jobs can you get?
Corporate Finance is part of the overarching working field of Finance. As you have seen in the first part of this article Corporate Finance is mainly about financing firms and their operations. If you are interested in this working field, it would be likely that you will end up working for a bank or the financial department of a company. Jobs that would fit this course would be:
· Assistant financial controller
· Financial employee
· Financial administrator
· Employee Finance & control
· Financial manager
· Financial Director (CFO)
· Financial controller
· Corporate finance consultant
Since we are speaking from experience and we have passed this exam. We have used this knowledge to create the Corporate Finance Erasmus University EUR summary for you. This summary is composed by former Corporate Finance students at the Erasmus University Rotterdam.
Order your own Corporate Finance Erasmus University EUR summary over here!
