BØK 3423 Finance
BØK 3423 Finance
Finance deals with the savings and investments of businesses, individuals and authorities; and permeates all parts of society. This introductory course 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.
After completing the course, students shall:
- Understand the importance of cash flows for the analysis of investment projects
- Understand that cash flows received at different times have different value (discounting) and the importance for the valuation of investment projects
- Understand what is relevant risk, and hence the value of diversification, and how it affects the cost of capital for investments.
- Understand different financial securities, especially stocks and bonds, and how their prices are formed in markets.
After completing the course, students should be able to:
- Budget cash flows using Excel, both according to the equity method and the total capital method.
- Apply the various discounting rules, both with the help of a calculator and Excel, to value investment projects and calculate the value of financial instruments such as shares and bonds
- Calculate capital costs, including applying the Capital Value Model, and creating simple portfolios using Excel.
- Calculate profitability of investment projects, in particular Net Present Value, both using calculator and Excel.
As the focus will be consistently on which assumptions the various theories in the course are based on, it is expected that the students have a critical attitude to the relevance of these. After completing the course, the students should have a good understanding of the practical and international relevance of the theory.
Through group work, and associated learning activities, students will develop cooperation skills. More specifically: commenting on work, reflecting on comments, and collaboratively implementing changes.
- Introduction – Placement of the course's content in the finance subject
- Interest calculation and application to the pricing of shares and bonds
- Portfolio theory, diversification and risk
- The capital value model: Price of risk in financial markets and significance for investment projects' cost of capital
- Review of a realistic case for investment analysis
15 sessions of 2 hours each (30 hours) are lectured in the auditorium/classroom. These 15 sessions are supported by videos that review theory and issues. In order to stimulate a good learning environment, two-way communication with the students is planned. The students are responsible for participating in the teaching with questions, comments and discussion. During the course, several tasks and tutorials are set up, including 2 tests with follow-up from student assistants, as well as several tasks that the students receive automatic feedback on.
There is extensive use of Excel in the course. The course ends with a case and a group submission that requires solving in Excel. Students are therefore strongly encouraged to complete the online course in Excel before this course starts.
E-Learning
Where the course is delivered as an online course, the lecturer will, in collaboration with the study administration, arrange an appropriate combination of digital learning resources and activities. These activities will correspond to the stated number of teaching hours delivered on campus. Online students are also offered a study guide that will provide an overview of the course and contribute to course progression. The total time students are expected to spend completing the course also applies to online studies.
Higher Education Entrance Qualification
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
Introductory level in managerial accounting, mathematics and statistics.
| Assessments |
|---|
Exam category: Submission Form of assessment: Submission other than PDF Exam/hand-in semester: First Semester Weight: 40 Grouping: Group (1 - 4) Duration: 1 Semester(s) Comment: Group work on an investment case with extensive use of Excel. Group work is an important part of the course and it is not recommended to solve the case alone. Concurrent learning activities support progress. Exam code: BØK 34232 Grading scale: ECTS Resit: Examination every semester |
Exam category: School Exam Form of assessment: Structured Test Exam/hand-in semester: First Semester Weight: 60 Grouping: Individual Support materials:
Duration: 2 Hour(s) Exam code: BØK 34233 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 30 Hour(s) | |
Digital resources | 15 Hour(s) | |
Prepare for teaching | 70 Hour(s) | |
Student's own work with learning resources | 27 Hour(s) | |
Group work / Assignments | 20 Hour(s) | |
Feedback activities and counselling | 8 Hour(s) | |
Examination | 30 Hour(s) |
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.