Study Guide

Objectives (course unit)

The course covers the basic aspects of corporate finance, the structure and functions of financial markets and elements of decision making on financial questions.
After completing the course, 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 the cost of capital
- Define how risk relates to return
- Describe the structure and functions of financial markets

Content (course unit)

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

Prerequisites (course unit)

-

Further information (course unit)

-

Assessment criteria, satisfactory (1-2) (course unit)

The student is able to explain the fundamentals of corporate finance. The student recognises and is able to determine and to a certain extent use the fundamental concepts and models of corporate finance.

Assessment criteria, good (3-4) (course unit)

The student is able to 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.

Assessment criteria, excellent (5) (course unit)

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

Location and time

TAMK kuntokatu facilities.

Exam schedules

The exam date is to be informed during the first lecture, retakes to be scheduled accordingly.

Assessment scale

0-5

Teaching methods

Contact teaching with exercises, individual studies and team working with assignments dedicated. The use of MyFinanceLab by Pearson is having an important role during the course.

Learning materials

Based on course materials and the book (as e-book):
Fundamentals of Corporate Finance, 4th or 5th ed.
J.Berk, P.DeMarzo and J. Harford. Pearson

In addition, MyFinanceLab by Pearson is to be used during the course. That includes an extensive set of practical guidance, exercises, tutorials and the e-book.

Student workload

This is a 4 cr course (4*27h), which is based on participation in lectures and assignments dedicated.

Content scheduling

There are 5 lectures and the exam, the detailed schedule is to be informed during the first class.

Completion alternatives

N/A

International connections

This is and international business finance course, a second year course as part finance module.