MAN 5000 Corporate Financial Management

MAN 5000 Corporate Financial Management

Course code: 
MAN 5000
Department: 
Finance
Credits: 
30
Course coordinator: 
Geir Høidal Bjønnes
Product category: 
Executive
Portfolio: 
Master of Management
Semester: 
2018 Autumn
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
Associate course
Course codes for multi- or associated courses.
MAN 5001 - 1. semester
MAN 5002 - 2. semester
Introduction

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

Learning outcomes - Knowledge

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

 

Learning outcomes - Skills

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

Learning Outcome - Reflection

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.

Course content

1st Investment decisions
2nd Financing decisions
3rd Valuation
4th Financial investments
5th Financial risk management
6th International finance

Learning process and requirements to students

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.

 

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

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 

Qualifications

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.

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No2 Semester(s)Group (2 - 4)Case hand-in groups, counts 10% of the continuous assessment.

Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No2 Semester(s)Group ( 2 - 4) Case hand-in groups, counts 10% of the continuous assessment.


Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No2 Semester(s)Group (2 - 4)Case hand-in groups, counts 10% of the continuous assessment.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No2 Semester(s)Group (2 - 4)Case hand-in groups, counts 10% of the continuous assessment.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No2 Semester(s)Individual Individual case hand-in, counts 10% of the continuous assessment.
Exam category:
Activity
Form of assessment:
Class participation
Exam code:
MAN 50002
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
50No -Individual Class participation, counts 50% of the continuous assessment.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MAN 50001
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
60No2 Semester(s)Group (1 - 3)Term paper, counts 60% of the total grade.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):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
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):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
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):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
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):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
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):Individual
Duration:2 Semester(s)
Comment:Individual case hand-in, counts 10% of the continuous assessment.
Exam code: MAN 50002
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Activity
Form of assessment:Class participation
Weight:50
Invigilation:No
Grouping (size):Individual
Duration: -
Comment:Class participation, counts 50% of the continuous assessment.
Exam code: MAN 50002
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:60
Invigilation:No
Grouping (size):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
Exam organisation: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
160