GRA 8161 Corporate Finance
APPLIES TO ACADEMIC YEAR 2012/2013
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GRA 8161 Corporate Finance Responsible for the course Øyvind Norli Department Department of Financial Economics Term According to study plan ECTS Credits 4 Language of instruction English Introduction The objective of the course is to familiarise the participants with how organisations should make and do make financial decisions. Learning outcome The objective of the course is to familiarise the participants with how organisations should make financial decisions. For a firm, these decisions are: · The real asset decision: · How should the firm invest in real productive assets? · How should the firm assess risk? · The financing decision: · How should the firm finance its real assets? Typically, these decisions are strategic in nature since they are frequently costly to reverse and have significant, long-term and risk consequences. Learning outcome Acquired knowledge: · Methods for evaluating investment projects · Handling risk in project analysis · Determining a company and project cost of capital · Determination of the appropriate firm capital structure · Understanding options · Understand key challenges of Mergers and acquisitions Acquired skills: · Choosing between good and bad investment projects · Adjusting project returns for risk · Estimating the economics consequences of mergers and acquisitions Reflection: The participants should be able to evaluate the trade-off between risk and return in making financial decisions. Prerequisites Granted admission to the EMBA programme. Compulsory reading Books: Hillier, David; Ross, Stephen; Randolph W. Westerfield; Jeffrey Jaffe; Bradford D. Jordan. 2010. Corporate finance. European ed. McGraw-Hill Other: Cases (will be distributed) Recommended reading Course outline 1.Introduction to financial management (1-2) 2. Cash flow (3) 3. Net present value (4-5) 4. Investment rules (6) 5. Economic project analysis (7-8) 6. Risk (9, 10, 12) 7. Financial strategy/leverage (13-17) 8. Issuing securities (19) 9. Leasing (21) 10. Options (22) 11. Mergers and acquisitions (29) Computer-based tools Spreadsheets will be used extensively in the course Learning process and workload 1 ECTS credit corresponds to a workload of 26-30 hours. The course is conducted through a total of 32 hours of lectures and casework. The cases are prepared in groups and discussed in class. It is expected that the participants actively participate in class discussions. A number of cases will be used throughout the course. It is expected that the participants have prepared themselves beforehand for the discussion of the cases in the classroom. Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 20% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials
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