Learning Outcomes
On completion of this course the student will be able to:
- understand the role of the capital market within society
- evaluate and make simple financial analysis
- use simple models for pricing of financial instruments
- derive and analyze the interaction between financial decisions and corporate valuation
The student will acquire knowledge of:
- valuation models for financial instruments
- Effective Market Hypothesis (EMH)
- risk and portfolio analysis
- Miller & Modigliani propositions
- risk-cost of capital- and capital budgeting
- options and capital budgeting
Course Content
The course covers the following topics: Introduction to corporate finance and the net present value approach for valuation; the introduction of risk as a concept and its implementation into valuation or estimation models; Portfolio Theory and the Capital Asset Pricing Model (CAPM); analysis of the cost of capital and capital-structure in the Miller & Modigliani framework. Valuation of options and the Black & Scholes Formula.
Assessment
Written examination and assignments
Forms of Study
Lectures and assignments
Grades
The Swedish grades U–VG.
Prerequisites
- 7.5 points each in Microeconomics and Macroeconomics, First Cycle Level
Other Information
There are a maximum of 5 resit attempts for the written examination
Replaces NAB003
Replaces NAB003
Literature
- Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe. (2002) Corporate finance. Boston, Mass. : McGraw-Hill/Irwin. (600 p). ISBN 0-07-115088-9
Note: senaste upplagan