APPLIES TO ACADEMIC YEAR 2016/2017
GRA 6025 Financial Management
Responsible for the course
Department of Finance
According to study plan
Language of instruction
The finance discipline has over the last decades matured to the point where there exists a sound body of theory. In this introductory course, the theory of finance will be illustrated and applied to problems in corporate finance.
Learning to cope with routine problems is easy, for instance by developing a list of rules for dealing with such problems. However, full reliance on the list-of-rules approach is insufficient as problems that do not fit these rules will be encountered. A thorough understanding of financial theory will facilitate transcending the simple rules.
The course focuses on the understanding of the way information is conveyed between companies and investors, of the main sources of value creation within firms, of the importance of competition and incentives. There is a special emphasis on the quantitative skills required to measure the value created by companies in an economy.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Berk, Jonathan, Peter DeMarzo. 2014. Corporate finance. 3rd ed., global ed. Pearson
During the course there may be hand-outs and other material on additional topics relevant for the course and the examination.
- Finance- An Introduction
- Accounting Statements and Cash Flows
- Value and Capital Budgeting
- Valuation of Bonds and Stocks
- Alternative Investments Rules
- Capital Budgeting
- Risk and return
- The Capital Asset Pricing Model
- Risk, Return and Capital Budgeting
- Capital Structure and PayoutPolicy
- Payout Policy
Introduction to valuation
Learning process and workload
A course of 6 ECTS credits corresponds to a workload of 160-180 hours.
The instruction consists primarily of presentations and discussions of the readings assigned to the topics listed above. Students are expected to have read the material before each class meeting.
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.
The course grade will be based on the following activities and weights:
20% Two assignments
20% 2 hours written examination (mid-term)
60% 3 hours written examination
|Form of assessment||Weight||Group size|
|Written examination 2 hours||20%||Individual|
|Written examination 3 hours||60%||Individual|
Specific information regarding student assessment will be provided in class. This information may be relevant to requirements for term papers or other hand-ins, and/or where class participation can be one of several components of the overall assessment. This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded using points on a scale from 0-100. The final grade for the course is based on the aggregated mark of the course components. Each component is weighted as detailed in the course description. Students who fail to participate in one/some/all exam components will get a lower grade or may fail the course. You will find detailed information about the points system and the mapping scale in the student portal @bi. Candidates may be called in for an oral hearing as a verification/control of written assignments.
GRA 60251 continuous assessment accounts for 100 % of the final grade in the course GRA6025.
Examination support materials
BI approved exam calculator
Permitted examination support materials for written examinations are detailed under examination information in the student portal @bi. The section on support materials and the use of calculators and dictionaries should be paid special attention to.
It is only possible to retake an examination when the course is next taught. The assessment in some courses is based on more than one exam code. Where this is the case, you may retake only the assessed components of one of these exam codes. All retaken examinations will incur an additional fee. Please note that you need to retake the latest version of the course with updated course literature and assessment. Please make sure that you have familiarised yourself with the latest course description.
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