Finance 1 (IBEB)

Description

Practical information Course ID: FEB12003X Credits: 8 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Business Economics, E2-28, 010-4081200, office.be@ese.eur.nl Course description Content: During this course we will study the knowledge necessary to value a firm. The value of the firm influences the prices of its shares en determines the price paid for shares in case of mergers and acquisitions. From the perspective of the financial manager and the financers of the firm. Finance 1 will show how investment and financing decisions influence the value of the firm. Besides thinking in terms of classical rational profit maximization thinking, we will address important developments in behavioural finance and sustainability as well. Finance 1 encompasses classes, tutorial sessions, webcasts and on-line exercises. During the weekly classes, teacher present knowledge. The tutorial sessions will be focused around real-life case studies, such that students understand how the knowledge is applied for real investment decisions, IPOs and take overs. The webcasts are short films wherein exercises will be discuss and teacher give additional information. Learning goals: After following Finance 1, students may expect that they - know what cash flows are and can translate future cash flows to values today; - can apply financial calculus; - can interpret financial information from a firm and assess the value of that firm. - understand the basic principles of corporate finance and investments. - have seen many examples of IPOs, mergers, acquisitions and firm valuation. - have a perspective on the value of the firm and sustainability. Extra: None Study materials Berk, J. and P. DeMarzo, Corporate Finance, Pearson, 6th Global edition, 2023 (ISBN 9781292446318) Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Economics ECON-DIV International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Premaster Accounting, Auditing & Control Premaster Economics and Business Period Enrolment periods: Enrolment period: 1 December 2025 until 2 January 2026 23:59 Unenrolment: until 20 January 2026 23:59 Period of education: 29 december 2025 until 28 februari 2026 Assessment Assessment materials: Text book: Berk, J. and P. DeMarzo, Corporate Finance, Pearson, 5th Global Edition, 2020, ISBN 9781292304151. Chapters 2–17, 23, 28. Webcasts Case studies Online quizzes Assessments (result in OSIRIS): Test weight: 100 Assessment: Resit opportunity