ØABED4000 Corporate Finance Course description

Managers have to make three types of key decisions in the financial area, namely decisions about:

• Investments
• Funding
• Dividends

This course develops the students' ability to make good decisions and identifies incentives that stimulate managers to make decisions that are in the owner's best interests. The course builds on compulsory bachelor's degree level investment and finance courses.

None.

Knowledge

The student has

• in-depth knowledge of theory and practice in strategic corporate finance
• detailed knowledge and understanding of enterprise value and how it can be influenced by the enterprise¿s investments, finances and decisions to declare dividend
• insight into financial markets, their influence on financial decisions and internal and external investment strategies

Skills

The student is capable of

• analysing complex financial decisions
• identifying incentives capable of encouraging managers to make decisions that are in line with the best interests of the owners

• Risk and return on investment and financial decisions
• Market efficiency and financing decisions
• Project analysis and investment strategy
• Agency problems, performance measurement and incentives
• Dividend policy, debt policy, debt capacity and enterprise value
• Financial planning and working capital management
• Mergers, acquisitions and their impact on enterprise value

The students require a lot of practice in order to develop their analytical abilities. The subject matter is taught through ordinary lectures, guest lectures, group work and discussions relating to case exercises.

An individual written assignment (approx. 10 pages) will be set and must be approved before the student can take the exam. If the assignment is not approved, the student will be given one opportunity to submit an improved version. The lecturer will inform students of deadlines for submission.

The course concludes with a four-hour supervised written exam.

Students who become ill or fail an exam are entitled to register for a resit/rescheduled exam in the course in accordance with the Regulations relating to Studies and Examinations at OsloMet.

Calculator (see separate regulations).

All handwritten and printed support material is allowed.

A grade scale with grades from A to E for pass and F for fail is used.

Graded by one internal and one external examiner.