GRA 8198 Corporate Finance (2020/2021)

GRA 8198 Corporate Finance (2020/2021)

Course code: 
GRA 8198
Department: 
Finance
Credits: 
4
Course coordinator: 
Øyvind Norli
Product category: 
Executive
Portfolio: 
EMBA Business Administration - Core Courses
Semester: 
2020 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
Two semesters
Introduction

This course will introduce you to Corporate Finance. The main objective of the course is to provide you with insights and practical tools that will help you make sound financial decisions.The course covers two broad topics:

Part I: Financial Policy and the risk-return trade-off. 

In Part I, we will examine the factors that determine a companys need for external financing, be it debt or equity. We will then consider the optimal mix of debt and equity financing. We will also introduce you to the trade-off between risk and return in capital markets.

Part II: Valuation. 

In Part II, we will develop the tools needed for valuing investment projects, including the estimation of relevant project cash flows, estimating the cost of capital (discount rate), and dealing with risk. We will then use these tools as a basis for selecting investment projects and valuing companies.

Learning outcomes - Knowledge
  • Methods for evaluating investment projects
  • Handling risk in project analysis
  • Determining a company and project cost of capital
  • Determination of the appropriate firm capital structure
  • Understanding options
  • Understand key challenges of Mergers and acquisitions
     
Learning outcomes - Skills
  • Choosing between good and bad investment projects
  • Adjusting project returns for risk
  • Estimating the economics consequences of mergers and acquisitions
General Competence

The participants should be able to evaluate the trade-off between risk and return in making financial decisions.

Course content

1. Introduction to corporate finance
2. Financial planning
3. Capital budgeting
4. Risk and return. CAPM.
5. Capital structure
6. Free Cash Flow
7. Cost of capital
8. Options. real options.
9. Mergers and acquisitions

Teaching and learning activities

1 ECTS credit corresponds to a workload of 26-30 hours. 

The course is conducted through a total of 32 hours of lectures and casework. The cases are prepared in groups and discussed in class. It is expected that the participants actively participate in class discussions. 

A number of cases will be used throughout the course. It is expected that the participants have prepared themselves beforehand for the discussion of the cases in the classroom. 

Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 25% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component will be graded using points on a scale 0 -100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the course. Students who fail to participate in one/some/all exam components will get a lower grade or may fail the course. Candidates may be called in for an oral hearing as a verification/control of written assignments.

Specific information regarding the points system and the mapping scale beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one of several elements of the overall evaluation.

The course is a part of a full Executive MBA programme and examination in all courses must be passed in order to obtain a certificate.

Software tools
No specified computer-based tools are required.
Additional information

Spreadsheets will be used extensively in the course

Qualifications

Granted admission to the EMBA programme. Please consult our student regulations.

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Activity
Form of assessment:
Class participation
Exam code:
GRA 81981
Grading scale:
Point scale
Grading rules:
Internal examiner with external supervisor
Resit:
All components must, as a main rule, be retaken during next scheduled course
25No -Individual Class participation: 25% of the grade
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA 81981
Grading scale:
Point scale
Grading rules:
Internal examiner with external supervisor
Resit:
All components must, as a main rule, be retaken during next scheduled course
35No1 Semester(s)Individual Individual assignment: 35% of the grade
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA 81981
Grading scale:
Point scale
Grading rules:
Internal examiner with external supervisor
Resit:
All components must, as a main rule, be retaken during next scheduled course
40No1 Semester(s)Group (2 - 8)Group work (case write-up): 40% of the grade
Exams:
Exam category:Activity
Form of assessment:Class participation
Weight:25
Invigilation:No
Grouping (size):Individual
Duration: -
Comment:Class participation: 25% of the grade
Exam code:GRA 81981
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:35
Invigilation:No
Grouping (size):Individual
Duration:1 Semester(s)
Comment:Individual assignment: 35% of the grade
Exam code:GRA 81981
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:40
Invigilation:No
Grouping (size):Group (2-8)
Duration:1 Semester(s)
Comment:Group work (case write-up): 40% of the grade
Exam code:GRA 81981
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Type of Assessment: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Student workload
ActivityDurationComment
Teaching on Campus
32 Hour(s)
Prepare for teaching
28 Hour(s)
Student's own work with learning resources
50 Hour(s)
Self study, feedback activities/counselling and exam
Sum workload: 
110

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 4 ECTS credit corresponds to a workload of at least 110 hours.