ØABED3000 Corporate Finance Course description

We start the course with an introduction to basic theoretical elements needed to understand investment decision rules, corporate policy decisions and capital budgeting/valuation. Then, we move forward to the topic of investment under uncertainty, which provides the main theoretical and methodological insights on portfolio selection, the capital asset pricing model (CAPM model) and the cost of capital. This topic is covered in more depth in the ØABED3500; "Investments" course. The topic of Capital Structure builds on the cost of capital to provide a deep understanding of optimal corporate policy decisions, in regards to capital structure, investment and payout policy, in the presence of market imperfections. We also cover the interlinkages with operating decisions and other investment decisions of the firm by developing the intuition on working capital management, leasing and risk management. The last topic draws on all of the above to cover more advanced valuation with leverage and capital budgeting. This last topic provides the grounds for the ØABED3700/4100; "Valuation" course.

This course provides students with skills and experience in how to attract investors to their entrepreneurial project and how to scale up and grow their project internationally.

The target group for this course is early-stage companies/projects with ambitions to grow and expand. It is designed for startups or innovation projects that want to grow through fundraising and will help them become fundraising ready. After interest is generated among investors, it is essential to ensure that the pitched message have been correctly received. This process is called due diligence and is the foundation of this course. It includes testing and validating the scalability of your business model, building a financial model and selecting the best funding source for your company.

Language of instruction is English.

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence.

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Knowledge

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After completing this course, students will have

• broad knowledge of key topics in corporate finance, including; theories, tools and methods within the field,
• understanding of the role of corporate finance in society.

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Skills

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After completing this course, students will be able to

• apply professional knowledge and relevant results from research to practical and theoretical issues in order to take informed decisions
• to reflect on their own professional practice (in finance or non-finance profiles)
• to find, evaluate and refer to information and use it to shed light on basic finance issues
• to use basic professional tools and techniques

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General competence

After completing this course, students will;

• have insight into relevant professional and ethical issues related to finance,
• be able to plan and carry out varied work tasks and projects that extend over time, alone and as a participant in a group,
• be able to convey key theories, problems and solutions both in writing, orally and through other relevant forms of expression, and
• be aware of new thinking and innovation trends present in the field.

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In order to be able to register for the exam, the students must have two approved work requirements. First, students will take the tools proposed in the classroom and will adapt those tools to different setups in a practical excel exercise. Second, students will be asked to make a presentation of a given "real-life" financial management challenge using a business case. Students will present the main take-homes to the rest of the class.

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• Coursework 1: Tools, excel templates.
• Coursework 2: "Real-life" case presentation.

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Compulsory activities must be completed and approved by the given deadline in order for the student to take the exam. The approval of the coursework is defined as "Pass". The lack of approval of the coursework is defined as "Fail".

If one or more coursework requirements have not been approved, the student will be given the opportunity to submit an improved version once by a new given deadline. The deadlines for the above mentioned course requirements will be specified at the start of the course.

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• in- depth knowledge about different investment terms and deal making
• specialised knowledge about different planning and growth matrices
• a high level of knowledge about risk assessment and due diligence
• a broad understanding of and knowledge about what resources must be in place to be investor ready
• specialised knowledge about how to use entrepreneurial tools to assess funding opportunities
• specialised knowledge about scalable business models and different financial models

Skills

The student has

• a high level of skills in identifying and understanding different funding possibilities
• a high level of skills in setting future growth goals and measuring progress
• specialised skills in managing a due diligence process
• in-depth skills networking with investors nationally and internationally
• a high level of skills in building a financial model and identifying funding needs

General competence

The student has

• a high degree of competence in applying knowledge and skills when deciding the most appropriate funding strategy
• specialised competencies in communicating and mastering theoretical concepts, language and forms of expression that are relevant within the funding community
• a high level of competencies in ethical challenges related to funding and growth

The course includes lectures, readings, problem solving, oral and written presentations, workshops, guest speakers and cases. Students are expected to actively contribute and participate in discussions and exercises.

The following coursework requirements must have been approved in order for the student to take the exam:

• Coursework 1: Financial understanding and vocabulary. The students must take part in a workshop about the topic. The students must prepare a 10 minute presentation and hand-in a revised pitch deck presentation of 15-20 slides.
• Coursework 2: Investor Communication and Self-Awareness. The students must take part in a workshop about the topic.
• Coursework 3: Financial Modeling and Analysis. The students must take part in a workshop about the topic. The students must prepare a 5 minute presentation and hand-in a spreadsheet with their financial model.
• Coursework 4: Documentation and Compliance. The students must take part in a workshop about the topic. The students must hand-in a portfolio of documentation of a 10-15 pages to support their claims.

The purpose of the coursework is to produce the necessary financial models and documentation for an investor pitch, with a data room sufficient to conduct a Due Dilligence.

All required coursework must be completed and approved by the given deadline for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by the given deadline.

The students can hand in their proposal in Norwegian or English.

The exam in the course consists of two parts:

• Term paper

The term paper is a pitch deck presentation of 15-20 slides that communicate an entrepreneurial project to potential external investors. The term paper is written in groups of 2-5 students. This deck should include: problem, solution, value propositions, trends, market size, business model, value chain, traction, sustainability, financial planning, IP documentation and team and operation evaluation.

• Portfolio

The portfolio is a digital "Data Room" of both actual and drafts documents, which would fulfill the requirement of a Due Diligence. The portfolio is written in groups of 2-5 students. The students should demonstrate that they are able to document their pitched claims through financial models and statements, relevant documentation, contracts, and property rights. Where these do not yet exist, they need to demonstrate the ability to draft these documents.

Both exams must be passed in order to pass the course.

If a student has to resit the exam, the student can retake each part separately. It is not necessary to take both parts.

Students awarded a fail grade are given one opportunity to submit an improved version of the term paper and portfolio for assessment.