Opinto-opas

Osaamistavoitteet

The course aims to introduce how the various financial markets work in practice, what alternative sources of financing exist, and how risk and return are linked to decision making from an external point-of-view.
Getting professional level knowledge of corporate finance starts from learning and understanding of key concepts such as time value of money, and the cost of capital.
From the company point-of-view, different investment opportunities will be analyzed applying the most widely used capital budgeting methods, also considering the cost of capital, and the needs for decision-making about optimal investments and capital structure.

After completing the course, the student will be able to:
• describe the structure and functions of financial markets.
• compare investment opportunities and evaluate their profitability by using alternative.
• investment decision methods and criteria.
• compare the alternative sources of corporate financing.
• calculate the cost of capital.
• define how risk relates to return.

Sisältö

The contents include the followings:
• Structure and functions of financial markets (stock market, bond market)
• Decision making on financial questions
• Different methods to compare and rank investment opportunities (NPV, IRR, payback method)
• Sources of financing
• The relation between risk and return on financial markets
• Capital structure (CAPM)
• Cost of capital (WACC)

Esitietovaatimukset

None.

Arviointikriteerit, tyydyttävä (1-2)

The student can explain the fundamentals of corporate finance. The student recognizes and can determine and to a certain extent use the fundamental concepts and models of corporate finance.

Arviointikriteerit, hyvä (3-4)

The student can determine and apply the fundamental concepts and models of corporate finance. He/she can use different methods to evaluate investment opportunities and understands how risk and return are related.

Arviointikriteerit, kiitettävä (5)

The student masters the fundamental concepts and models of corporate finance in an excellent manner. He/she can conduct fluent and reasoned analysis and has good capabilities to apply the learned understanding of the framework of financial markets.

Lisätiedot

Implementation plan.