OUR ACADEMIC DEPARTEMENTS |
Lesson details
CAPITAL STRUCTURE | |||
2018-2019 | EnIESEG School of Management
(
IÉSEG
)
| ||
Class code : | 1819-IÉSEG-M1S1-FIN-MA-EI31UE | FINANCE |
Level | Year | Period | Language of instruction |
---|---|---|---|
Master | 1 | S1 | EnEnglish |
Academic responsibility | J.DESSAIN |
---|---|
Lecturer(s) | Jean Dessain |
- This class exists in these courses :
- IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS
Prerequisites
Students should have taken elementary courses in finance, and preferably one in corporate finance.
Learning outcomes
At the end of the course, the student should be able to:
At the end of the course, the student should be able to:
1/ explain how capital structure theories are related to financial practice.
2/ discuss, weigh and evaluate different factors that are considered by CEOs and/or CFOs when setting up their capital structure policy.
3/ understand the implications of various theories such as: the agency theory, the signalling theory, the trade-off theory, as well as firm- or industry-specific elements that influence the capital structure policy.
Course description
This course focuses on the main theories developped so far about the capital structure and the part of the equity within the financing of the company.
Starting from empirical evidences, the course confronts market practices with the main theories, starting with Modigliani & Miller and the various developments thereof and moves on through the signalling theory and the trade-off theories, towards the most recent theories that include a dynamic component.
The course also examines the firm- and industry-specific elements that will or should influence the firms' decisions.
Case studies will outline concrete strategies and confront them to theories.
Class type
Class structure
Type of course | Numbers of hours | Comments | |
---|---|---|---|
Independent study | |||
Estimated personal workload | 10,00 | ||
Group Project | 10,00 | ||
Face to face | |||
Interactive class | 16,00 | ||
Total student workload | 36,00 |
Teaching methods
- Case study
- Interactive class
Assessment
Type of control | Duration | Number | Percentage break-down |
---|---|---|---|
Continuous assessment | |||
Participation | 0,00 | 0 | 10,00 |
Others | |||
Group Project | 0,33 | 1 | 30,00 |
Final Exam | |||
Written exam | 2,00 | 1 | 60,00 |
TOTAL | 100,00 |
Internet resources
* This information is non-binding and can be subject to change