MAN 5000 Corporate Financial Management
MAN 5000 Corporate Financial Management
| MAN 5001 - 1. semester | |
| MAN 5002 - 2. semester |
This program will give students an insight into modern financial strategy that is both practical and useful for a company's long-term survival and growth.
The programme gives participants a useful, relevant education with thorough specialist study in an area which is of vital importance to the ability to survive and growth of companies. After completing the programme, participants will be well equipped to influence and make investment and financing decisions to the benefit of the company. Central issues such as how decisions affect the value of a company will be dealt with. In order that participants have the necessary background to be able to make rational decisions when the unexpected occurs, importance is attached to how uncertainty affects decision-making rules.
The aim is for the participants who take the course to become important resource persons and managers in their respective companies
Upon completion of the course, students should be able to:
- Understand the role of capital budgeting
- Understand the focus on cash flow as opposed to earnings
- Understand why risk analysis plays such an important role in modern finance
- Understand how the capital stucture and dividend decision can influence firm value
- Understand which factors affect the value of a company
- Understand the main models of financial securities valuation
- Understand how financial theory/financial models can be used for risk management
- Understand which additional factors that need to be included when evaluating international investment and/or financial decisions
After taking the course, the students shall be able to:
- apply knowledge (i.e. concepts and skills) in analyses and discussions on financial problems,
- distinguish between relevant and irrelevant information, and
- give written answers to questions so that the readers understand the applied methods and conclusions.
Examples:
When the tool is given, be able to apply the tool correctly
Based on simple situation descriptions, choose the right tool and apply it correctly
Based on more complex situation descriptions, be able to produce relevant information, link it to the suitable tool and apply the tool correctly
After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the field of finance.
1st Investment decisions
2nd Financing decisions
3rd Valuation
4th Financial investments
5th Financial risk management
6th International finance
The programme is conducted through five course modules over two semesters, a total of approx. 150 lecturing hours.
Project tutorials differ in each Executive Master of Management programme. It will consist of personal tutorials and tutorials given in class. Generally the students may expect consulting tutorials, not evaluating tutorials. The total hours of tutorials offered is estimated to 4 hours per term paper.
Please note that while attendance is not compulsory in all programmes, it is the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ itslearning or other course materials.
The students are evaluated through a term paper, counting 60% of the total grade and continuous assessment counting 40%. The term paper may be written individually or in groups of maximum three persons. All evaluations must be passed to obtain a certificate for the programme.
This is a programme 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 programme. Students who fail to participate in one/some/all exam components will get a lower grade or may fail the programme. 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 term paper is included in the degree’s independent work of degree, cf national regulation on requirements for master’s degree, equivalent to 18 ECTS credits per. programme. For the Executive Master of Management degree, the independent work of degree represents the sum of term papers from three programmes.
The program consists of six modules and five sessions. Information about the different topics will be distributed during the first session, and on Itslearning.
Topic 1 - INVESTMENT DECISIONS
This module provides basic insight into the theoretical and practical aspects of investment decisions.
Topic Overview
Cash flow
Capital Budgeting
Project Analysis under no uncertainty
Compounding and discounting rules/mathematical finance
Risk and required rate of return
Topic 2 - FINANCING DECISIONS
This module studies a company’s capital structure decision, and its cost of capital. Furthermore, this session provides basic knowledge in theories of corporate financial decisions.
Topic Overview
Long-term financing
Leverage and risk
Capital structure
Adjusted Present Value method
Dividend Decisions
Option pricing
Topic 3 - VALUATION
The purpose of this module is to train participants in valuation. We use the theoretical modules studied in previous modules, and focuses on how the various tools can and used in a specific valuation situation.
Topic Overview
Accounting-based cash flow models.
Future earnings based on existing accounting results, future strategy and expected owner activity
Cost of capital in practice
Multipliers
Sequential and direct valuation of equity.
Topic 4 - FINANCIAL INVESTMENTS
The purpose of this module is to increase our understanding of the relationship between financial markets and pricing of various financial instruments. Emphasis will be placed on managing the trade-off between expected return and risk by using financial theory.
Topic Overview
Financial markets risk and expected return
Market efficiency
Valuation of stocks
Valuation of other securities (bonds, options, futures)
Portfolio management
Topic 5 - FINANCIAL RISK MANAGEMENT
The purpose of this module is to identify the company's risk profile, and how to handle the identified risk.
Topic Overview
Financial risk management; what is it?
Investment decisions and capital structure
Forward and futures contracts
Risk reducing strategies
Identification and measurement of risk
Swap contracts
Financial contracts and attitude toward risk
Options
Topic 6 - INTERNATIONAL FINANCE
This module presents basic models in international finance.
Topic Overview
The international framework
Pricing of currency
Currency risk management
International investments and financing
Bachelor degree, corresponding to 180 credits from an accredited university, university college or similar educational institution
The applicant must be at least 25 years of age
At least four years of work experience. For applicants who have already completed a master’s degree, three years of work experience are required.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 10 Grouping: Group (2 - 4) Duration: 2 Semester(s) Comment: Case hand-in groups, counts 10% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 10 Grouping: Group (2 - 4) Duration: 2 Semester(s) Comment: Case hand-in groups, counts 10% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 10 Grouping: Group (2 - 4) Duration: 2 Semester(s) Comment: Case hand-in groups, counts 10% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 10 Grouping: Group (2 - 4) Duration: 2 Semester(s) Comment: Case hand-in groups, counts 10% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 10 Grouping: Individual Duration: 2 Semester(s) Comment: Individual case hand-in, counts 10% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Activity Form of assessment: Class participation Weight: 50 Grouping: Individual Comment: Class participation, counts 50% of the continuous assessment. Exam code: MAN 50002 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 60 Grouping: Group (1 - 3) Duration: 2 Semester(s) Comment: Term paper, counts 60% of the total grade. Exam code: MAN 50001 Grading scale: ECTS Resit: All components must, as a main rule, be retaken during next scheduled course |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 30 ECTS credit corresponds to a workload of at least 800 hours.