Corporate Finance (5cr)

Objectives (course unit)

The course covers the basic principles of corporate finance.

After completing the course, the students will be able to:

Compare the investment opportunities of a company and define their profitability by using alternative investment decision criteria.
Compare the alternative sources of corporate financing.
Calculate cost of capital.
Define how risk relates to return.
Describe the structure and functions of the financial markets.

Content (course unit)

How do companies compare different investment opportunities?
What are the alternative sources of corporate financing?
How is the cost of capital defined?
How are risk and return related?
What are the functions of the financial markets?

Exam schedules

During week 48/ 2016.

Assessment methods and criteria

- Exam (80%)
- Homework (20%)

Teaching methods

- lectures
- assignments
- team work

Learning materials

- Fundamentals of Corporate Finance, Global Edition, Second Edition. J.Berk, P.DeMarzo and J. Harford. Pearson International Edition.2015 or older edition
- MyFinanceLab - online material
- Tabula - online material

Student workload

5 ECTS, approximately 135 hours.

Content scheduling

Lessons once a week during weeks 36-47, exam (preliminary) week 48, more detailed information will be given in the beginning of the course.

Completion alternatives

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Practical training and working life cooperation

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Further information

The course starts during week 36.

Assessment criteria - fail (0) (Not in use, Look at the Assessment criteria above)

Student has failed in achieving the objectives of the course.

Assessment criteria - satisfactory (1-2) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course sufficiently. Student understands fundamentals of corporate finance. Student recognizes, is able to determine and to a certain extent use the fundamental concepts and models of corporate finance.

Assessment criteria - good (3-4) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course well although the skills and competences are somewhat in need of further development. Student is able to determine and apply the fundamental concepts and models of corporate finance well.

Assessment criteria - excellent (5) (Not in use, Look at the Assessment criteria above)

Student has achieved the objectives of the course excellently. The student masters the fundamental concepts and models of corporate finance in an excellent manner. Student is able to conduct fluent and reasoned analysis and has good capabilities to apply the learning.