BØK 3423 Finance - RE-SIT EXAMINATION

BØK 3423 Finance - RE-SIT EXAMINATION

Course code: 
BØK 3423
Department: 
Finance
Credits: 
7.5
Course coordinator: 
Dagfinn Rime
Course name in Norwegian: 
Finans - KONTINUASJONSEKSAMEN
Product category: 
Bachelor
Portfolio: 
Bachelor - Common Courses
Semester: 
2023 Autumn
Active status: 
Re-sit exam
Level of study: 
Bachelor
Resit exam semesters: 
2023 Autumn
Resit exam info

As from and including spring 2024, the form of evaluation will change from:

  • 3-hour individual school exam (Exam code BØK 34231) weighting: 100%

to:

  • Assignment in groups over one semester (Examination code BØK 34232), weighting: 40%
  • 2-hour individual school exam (Exam code BØK 34233), weighting: 60%

Re-sit examination in Examination code BØK 34231, weighting: 100% will be offered for the last time in autumn 2023 and spring 2024.

Teaching language: 
Norwegian
Course type: 
One semester
Introduction

This introductory course in finance focuses primarily on the investment side of the subject of finance. The purpose of the course is to equip students with necessary knowledge about terms and methods used in order to make sound investment decisions. It should be mentioned that the methods taught are applicable to both financial investments (stocks and bonds) and real investments (production facilities, equipment etc.). Additionally the course will focus on sustainable investment decisions.

Learning outcomes - Knowledge

During the course students should develop knowledge of:

  • The role of investment analysis in finance.
  • Why we focus on cashflows and not on earnings.
  • The concepts underlying the time value of money.
  • What is meant by the term discount rate/cost of capital.
  • The meaning of, and difference between, the different decision criteria for an investment/financing opportunity. Notably the NPV, IRR, Payback etc.
  • Understand the impact of sustainable investment decisions.
  • How one can use the above mentioned decision criteria in order to value financial investments like bonds and stocks as well as real investment opportunities.
  • What is meant by total risk, relevant risk and irrelevant risk.
  • The portfolio theory and its impact on what we call diversification benefits - on a conceptual level,
  • What is meant by Beta and how to interpret its size.
  • The Capital Asset Pricing Model (CAPM) and how this is derived - on a conceptual level,
  • What is meant by the Weighted Average Cost of Capital (WACC) and when this should be used.
Learning outcomes - Skills

Upon completion of the course the students should be able to:

  • Budget cash flows.
  • Apply the different rules for discounting and compounding with the help of a financial calculator and Excel.
  • Understand the economic content in sustainable decision criteria for an investment/financing opportunity.
  • Distinguish among the different decision criteria.
  • Apply the different decision criteria on financial investments like bonds and stocks.
  • Apply the portfolio theory on different investment opportunities.
  • Calculate Beta.
  • Derive the Capital asset Pricing Model (CAPM) on an intuitive level.
  • Apply the Capital Asset Pricing Model (CAPM).
  • Calculate the Weighted Average Cost of Capital (WACC).
General Competence

In the course there will be focus on the assumptions underlying the different theories covered. Hence, it is expected that students will have a critical attitude towards the realism of these. The students should upon completion of the course have a good understanding of the practical and international applicability of the theories covered.

Course content
  • Introduction - How the course fit into the subject of finance.
  • Cashflows.
  • Time value of money.
  • Capital budgeting (Net Present Value, Internal Rate of Return, Payback etc.).
  • The pricing of bonds.
  • The pricing of stocks.
  • Introduction to risk.
  • The Capital Asset Pricing Model (CAPM).
  • Weighted Average Cost of Capital (WACC).
Teaching and learning activities

There will be 11 3-hours lectures and lecturer-guided problem solving sessions. These lectures are supported by videos, explaining theory and discussing problems. In order to stimulate the learning environment the lecturer will seek two ways communication with the students. Students should feel responsible for class participation by asking questions. There will be 3 3-hours tests assisted by the lecture and student assistants.

Although software tools are not a requirement, it may be useful to do some tasks from the syllabus which require the use of Excel.

E-learning
When course is delivered online, lecturer, in cooperation with the Academic Services Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.

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

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
BØK34231
Grading scale:
ECTS
Grading rules:
Internal examiner
Resit:
Examination every semester
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
Duration:3 Hour(s)
Comment:
Exam code:BØK34231
Grading scale:ECTS
Resit:Examination every semester
Type of Assessment: 
Ordinary examination
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
6 Hour(s)
The teaching will consist of two traditional lectures. The first is an introductory lecture and the last is a summary.
Feedback activities and counselling
27 Hour(s)
.There are 9 sessions of 3 hours which will consist of theory, assignment review and problem solving. These sections will be supported by approx. 30 videos.
Prepare for teaching
110 Hour(s)
Student's own work with learning resources
54 Hour(s)
Examination
3 Hour(s)
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.