MAN 5000 Corporate Financial Management
MAN 5000 Corporate Financial Management
| Course code | Semester |
|---|---|
MAN 5001 - 1. semester | 2023 Autumn |
MAN 5002 - 2. semester | 2024 Spring |
This programme gives the students insight into modern financial strategy that is both practical and useful for a company's long-term value creation and growth.
The students will learn how to make investment and financing decisions for the benefit of the business. Key questions about how decisions affect the value of the business will be dealt with. In order to provide students with the necessary background to make rational decisions when the unexpected occurs, great emphasis is placed on how uncertainty affects the decision rules. During the programme, students will also learn how to deal with uncertainty in foreign exchange rates, interest rates and commodity prices.
Sustainability (ESG: Environmental, Social and Governance) has become increasingly important in financial strategy, both for investments and financing. The financial industry plays a particularly important role when it comes to sustainability because this industry channels capital for various applications. Examples here are KLP and the Government Pension Fund Global, which invest in equity portfolios and act actively through the boards and voting. Banks set requirements for sustainability in lending such that sustainable companies obtain cheaper loans. The programme integrates sustainability in the various topics.
The goal is for students who complete the programme to become important resource persons and leaders 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 portfolio theory and the importance of international diversification
- Understand how derivatives can be used to reduce foreign exchange risk and uncertainty regarding prices on raw materials
- Understand which additional factors that need to be included when evaluating international investment and/or financial decisions
- Understand the importance of sustainability in finance
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.
-
communicate extensive independent work and masters language and terminology in finance.
-
contribute to new thinking and innovation processes.
-
communicate about academic issues, analyses and conclusions, both with specialists and the general public.
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.
Excel is used in the programme. For instance, Bloomberg, Eviews etc. may also be used during the programme.
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 portfolio assessment counting 40%. The term paper may be written individually or in groups of maximum three students. In the portfolio assessment part (40%), students will work with cases. Both components develop during the programme through submissions and feedback.
Both exams must be passed to obtain a certificate for the programme.
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.
In all BI Executive courses and programs, there is a mutual requirement
for the student and the course responsible regarding the involvement of the student's experience in the planning and implementation of courses, modules and programmes. This means that the student has the right and duty to get involved with their own knowledge and practice relevance, through the active sharing of their relevant experience and knowledge.
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 and at least four years of work experience. For applicants who have already completed a master’s degree, three years of work experience are required.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 40 Grouping: Individual Duration: 2 Semester(s) Comment: This exam is organized as a portfolio assessment where students are given case assignments during the course. Students receive feedback along the way. In total, there will be 3 submissions to be submitted. The last delivery will be the final answer that will be censored. And which is delivered after the last collection. Exam code: MAN 50002 Grading scale: ECTS Resit: Examination when 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: Examination when next scheduled course |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 150 Hour(s) | |
Prepare for teaching | 150 Hour(s) | |
Student's own work with learning resources | 500 Hour(s) | Self study, term paper and exam |
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.