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EXC 3651 Shipping Finance

EXC 3651 Shipping Finance

Course code: 
EXC 3651
Department: 
Finance
Credits: 
7.5
Course coordinator: 
Siv Jønland Staubo
Product category: 
Bachelor
Portfolio: 
BBA - Specialisation in Shipping
Semester: 
2020 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

The task of this course is to help understand the economics of the shipping indusrty. What makes it so special is the greate voatility in the industry and it is a perfect market for blending theory and practice. Because shipping is such an old and international indusrty, with a history of continous change, we have a unique oppertunity to learn from the past.
The essence of business administration includes corporate finance (i.e. investment and financing). Good knowledge within these areas is a necessary prerequisite to understand the economic content of investment and financing decisions. There is vital knowlegde for people working in the shipping industry. Further it is important to be able to obtain decision-relevant information, discuss and assess alternatives, make correct decisions and convey relevant and useful information.
The aim of this course in corporate finance in the shipping industry is to provide the students with essential knowledge and skills, so that they can take part in discussions on problems in finance and carry out simple analyses within the field, make correct decisions and communicate the results of the analyses in a comprehensible manner.
The course focuses mainly on capital structure in general, and capital sturcture in the shipping industry in particular and being able to make sustainable decissions.

Learning outcomes - Knowledge

After completed course, the students shall have learned:

  • Different international financial theories
  • Capital structure decisions in different tax regimes.
  • Capital structure decisions and the impact of volatility, which is essential for the shipping industry.
  • How dividend decisions might affect firm value and firm.
  • How this industry change to more digital operations.
  • To be able to make sustainabble decissions in a worldwide industry.

 

Learning outcomes - Skills

After completed course, the students shall be able to:

  • Differentiate between the advantages and/or disadvantages of different financing instruments.
  • Explain key concepts and give an account of the tools used in analyses of corporate finance problems in general, and corporate finance problems in the international shipping industry in particular.
  • Explain from the toolbox: valuation methods, cash flow effects of distribution policy, sustainable decission making.
  • Give written answers to questions so that the readers understand the applied methods and conclusions.
General Competence
  • After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the field of corporate finance. Understand the imporatace of sustainablity in an international industry.
Course content

1. Cost, Revenue and Cash Flows in the Shipping Industry, ch. 6 (MS)
2. Project analysis, ch. 10 (BMA)
3. Investment, Strategy and Economic Rents, ch. 11 (BMA)
4. Risk, Return and Shipping Company Economics, ch. 8 (MS)
5. Efficient Markets and Behavioral Finance, ch. 13 (BMA)
6. An overview of Corporate Finance, ch. 14 (BMA)
7. How Corporations Issue Securities, ch. 15 (BMA)
8. Pay-out Policy, ch. 16 (BMA)
9. Does Deby Policy matter?, ch. 17&18 (BMA)
10. Financing Ships and Shipping Companies, ch. 7 (MS)
11. Financing and Valuation, ch. 19 (BMA)

Teaching and learning activities

The course will include a combination of lectures and tutorials where the students learn how to analyze and exlpain solutions to exercises.

The students are responsible for obtaining any information provided in class that is not included on the course homepage/It's learning or the text book. 

Excel spreadsheet models are highly recommended for problem-solving. 

Software tools
No specified computer-based tools are required.
Required prerequisite knowledge

EXC2110 Basic Financial Management

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC 36512
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination every semester
100No72 Hour(s)Group/Individual ( 1 - 4)
Exam category:
Submission
Form of assessment:
Structured test
Exam code:
EXC 36513
Grading scale:
Pass/fail
Grading rules:
Internal and external examiner
Resit:
Examination every semester
0Yes1 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Individual Multiple choice.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:No
Grouping (size):Group/Individual (1-4)
Support materials:
Duration:72 Hour(s)
Comment:
Exam code:EXC 36512
Grading scale:ECTS
Resit:Examination every semester
Exam category:Submission
Form of assessment:Structured test
Weight:0
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration:1 Hour(s)
Comment:Multiple choice.
Exam code: EXC 36513
Grading scale:Pass/fail
Resit:Examination every semester
Type of Assessment: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching36Hour(s)
Review of assignments in plenary6Hour(s)
Group work / Assignments118Hour(s)Preparation for lectures and plenary tutorials and work on two voulentary hand-in assignments
Self study40Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:36 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:6 Hour(s)
Comment:
Workload activity:Group work / Assignments
Duration:118 Hour(s)
Comment:Preparation for lectures and plenary tutorials and work on two voulentary hand-in assignments
Workload activity:Self study
Duration:40 Hour(s)
Comment:
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.