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Postgraduate course

Corporate Finance

  • ECTS credits10
  • Teaching semesterSpring, Autumn
  • Course codeECON364
  • Number of semesters1
  • LanguageEnglish
  • Resources

Level of Study

Master

Teaching semester

Irregular

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 student who has completed the course should have the following learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student

  • 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 student

  • 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.

Access to the Course

Master Programme in Economics, Professional Studies in Economics or equivalent

Teaching and learning methods

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

Compulsory Assignments and Attendance

 One term paper (pass/fail). Approved compulsory requirements do not have time limits.

Forms of Assessment

Written exam (4 hours)

Examination Support Material

Mathematical Formula Collection of K Sydsæter, A. Strøm and P. Berck or Mathematical Formulas for Economists of B Luderer, V. Nollau and K. Vetters and calculator. The following simple, non-programmable calculators without graphical display are allowed to be used for written tests:

All models of the type:

  • Casio FX-82
  • Hewlett-Packard HP30
  • Texas Instruments TI-30

The Department of Economics can conduct a sample of aids in the examination room.

Grading Scale

A-F

Assessment Semester

Assessment in teaching semester. New exam the following semester only for students who have a valid document of absence.

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

  • For written exams, please note that the start time may change from 09:00 to 15:00 or vice versa until 14 days prior to the exam. The exam location will be published 14 days prior to the exam.

  • Type of assessment: Written examination (New exam)

    Date
    21.09.2018, 09:00
    Duration
    4 hours
    Withdrawal deadline
    07.09.2018