EXC 2110 Basic Financial Management - Spring 2024

EXC 2110 Basic Financial Management - Spring 2024

Course code: 
EXC 2110
Department: 
Finance
Credits: 
7.5
Course coordinator: 
Roberto Tubaldi
Course name in Norwegian: 
Basic Financial Management - Spring 2024
Product category: 
Bachelor
Portfolio: 
Bachelor of Business Administration (BBA) - Programme Courses
Semester: 
2024 Spring
Active status: 
Active
Level of study: 
Bachelor
Teaching language: 
English
Course type: 
One semester
Introduction

Finance deals with the savings and investments of businesses, individuals and authorities; and permeates all parts of society. This introductory cours focuses primarily on the investment side of finance, and introduces financial instruments (shares and bonds), and the so-called real investments (e.g., launch of new products). Part of the course will also be devoted to discussing the role of sustainability in investment decisions. The students will acquire the knowledge and skills to make investment decisions that are relevant for companies, authorities and private individuals.

The course connects theory and practice by analyzing real world examples with Excel. Therefore, the students will also gain valuable experience in analyzing investment projects that will generate a competitive advantage in their future working life.

Learning outcomes - Knowledge

During the course, students shall master the following skills:

  • Understand the importance of cash flows for the analysis of investment projects
  • Understand that cash flows received at different times have different (present) values (discounting), and the importance of this concept for the valuation of investment projects.
  • Understand what is the relevant risk, and how it affects the cost of capital for investments.
  • Understand different financial securities, especially shares and bonds, and how their prices are formed in markets.
Learning outcomes - Skills

After completing the course, students should be able to:

  • Perform capital budgeting analysis and basic company valuation.
  • Understand the various discounting rules and be proficient in project valuation and in the valuation of stocks and bonds. The theoretical understanding of these issues will be paired with a working knowledge of Excel applications.
  • Understand and assess risk and the cost of capital
General Competence

After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the business economics field. The students will understand that cash flows received at different times have different (present) values (discounting), and will fully acknowledge the importance of this concept for the valuation of investment projects.

Course content
  • Introduction – Investment decisions and the role of corporate finance.
  • Interest rates and the valuation of stocks and bonds.
  • Portfolio theory and risk.
  • The Capital Asset Pricing Model: the pricing of risk in financial markets and its importance in the assessment of the cost of capital.
  • Introduction to a real case-study on investment analysis. 
Teaching and learning activities

The course is structured in 15 sessions of 2 hours each (30 hours) in the auditorium/classroom. These 15 sessions are supported by videos that review the theory. In order to stimulate a good learning environment, the students will actively participate to the course with questions, comments and discussion.

During the course, the students will be challenged with several tasks and tutorials, including 2 tests with follow-ups from student assistants, as well as several homeworks where the students will receive automatic feedback on.

The course will make extensive use of Excel, and will end with a case solved in small groups with Excel. Students are therefore strongly encouraged to complete the online course in Excel before this course starts.

Software tools
Software defined under the section "Teaching and learning activities".
Additional information

Starting in the spring of 2024, the form of evaluation in this course has changed from one exam code (EXC 21101) to two exam codes (EXC 21102 and EXC 21103).

A re-sit exam is offered in the former exam code EXC 21101 in spring 2024, and last time autumn 2024.

Qualifications

Higher Education Entrance Qualification

Disclaimer

Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Required prerequisite knowledge

Basic course in mathematics and statistics or equivalent.

Assessments
Assessments
Exam category: 
Submission
Form of assessment: 
Submission PDF
Exam/hand-in semester: 
First Semester
Weight: 
40
Grouping: 
Group (1 - 4)
Duration: 
1 Semester(s)
Exam code: 
EXC 21102
Grading scale: 
ECTS
Resit: 
Examination every semester
Exam category: 
School Exam
Form of assessment: 
Written School Exam - digital
Exam/hand-in semester: 
First Semester
Weight: 
60
Grouping: 
Individual
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration: 
2 Hour(s)
Exam code: 
EXC 21103
Grading scale: 
ECTS
Resit: 
Examination every semester
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
30 Hour(s)
The teaching consists of 15 sessions of 2 hours each in the auditorium, supported by digital material to promote reflection and discussion.
Digital resources
15 Hour(s)
The course is supported by a number of asynchronous digital learning elements, such as videos and tasks. Self-study is expected on these components.
Prepare for teaching
70 Hour(s)
Including videos on theory, exercises and other tasks.
Student's own work with learning resources
27 Hour(s)
Group work / Assignments
20 Hour(s)
The course ends with a comprehensive a graded case study. The students will work in small groups.
Feedback activities and counselling
8 Hour(s)
Students will solve 2 tests that will be reviewed by a learning assistant in two 2-hour sessions in the auditorium.
Examination
30 Hour(s)
Preparation for the final 2-hour exam.
Sum workload: 
200

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.