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Education

Postgraduate course

Corporate Finance

Level of Study

Master

Semester of Instruction

Autumn 2017

Objectives and Content

This course gives an introduction to key concepts and empirics in corporate finance. Some of the topics that will be covered are:

  • Basic financial concepts such as: present value, the opportunity cost of capital, investment decisions, risk and return and market efficiency.
  • The impact of corporate financing, including payout policy, on investment decisions and firm value.
  • Agency conflicts between shareholders, managers and debtholders.
  • Executive compensation and other systems designed to reduce the extent of agency conflicts.
  • Information asymmetries between managers and shareholders, and their impact on corporate financing and investment policies.
  • Raising capital
  • The implications of behavioural finance for corporate behaviour.
  • Market efficiency and event study methodology
  • Valuation of stocks
  • Rationales for and implications of merger and acquisition activity

Learning Outcomes

A candidate who has completed his or her qualification should have the following learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The candidate¿

  • can explain basic financial concepts such as: present value, the opportunity cost of capital, investment decisions, risk and return and market efficiency.
  • understands the impact of corporate financing on investment decisions and firm value.
  • can explain option theory and valuation.
  • understands the functioning of bond markets and the valuation of bonds.
  • understands theories and evidence on executive compensation.
  • understands information asymmetries between managers and shareholders and their impact on corporate financing and investment policies.
  • understands the implications of behavioral finance for corporate behavior.
  • can explain rationales for and implications of merger and acquisition.

 

Skills

The candidate¿

  • can apply real options theory to investment decisions.
  • can identify agency conflicts between shareholders, managers and debtholders.
  • can explain corporate governance systems designed to reduce the extent of these agency conflicts.

Teaching and learning methods

 3 hours per week, over 12 weeks. 36 hours in total.

Compulsory Assignments and Attendance

 One term paper (pass/fail). Passed mandatory exercises are valid this term and the 3 following terms.

Forms of Assessment

Written exam (4 hours)

Grading Scale

A-F

Assessment Semester

Autumn 2017

Course Evaluation

All the courses at the department of Economics are evaluated at the end of each semester.

Contact

Contact Information

Department of Economics

E-mail: studieveileder@econ.uib.no

Tlf: 555 89 226

Exam information

  • Type of assessment: Written examination

    Date
    24.11.2017, 09:00
    Duration
    4 hours
    Withdrawal deadline
    07.11.2017