Economics, Corporate Finance, Second Cycle, 7.5 credits

Learning outcomes

Knowledge and understanding

After completing the course, students shall be able to

• comprehend the relation between the firm's real assets and financing
• know fundamental theories and models relating to firms' financing.

Competence and skills

After completing the course, students shall be able to

• use different techniques to value projects and firms
• make rational decisions that relate to firms' financing.

Judgement and approach

After completing the course, students shall be able to

• assess the theoretical importance of central models in firm financing and critically relate to their practical limitations.

Content

The main course contents are the time value of money, financial calculations, decisions under risk and uncertainty, investment decision rules, cost of capital, company valuation, the financial structure of firms and dividend policy. The course also analyzes conflicts between shareholders and debt holders and conflicts between shareholders and management.

Examinations and grades

Assignment, 1.5 credits (Code: A001)
Grades used are Fail (U) or Pass (G).

Written Examination, 6 credits (Code: A002)
Grades used are Fail (F), Sufficient (E), Satisfactory (D), Good (C), Very Good (B) or Excellent (A).

According to the Higher Education Ordinance, Chapter 6, Section 18, a grade is to be awarded on the completion of a course, unless otherwise prescribed by the university. The university may determine which grading system is to be used. The grade must be determined by a teacher specifically nominated by the university (the examiner).

In accordance with university regulations on grading systems for first and second-cycle courses and study programmes (Vice-Chancellor’s decision ORU 2018/00929), one of the following grades is to be used: fail (U), pass (G) or pass with distinction (VG). For courses included in an international master’s programme (60 or 120 credits) or offered to the university’s incoming exchange students, the A to F grading scale is to be used. The vice-chancellor, or a person appointed by them, may decide on exceptions from this provision for a specific course, if there are special grounds for doing so.

The grades used on this course are Fail (F), Sufficient (E), Satisfactory (D), Good (C), Very Good (B) or Excellent (A).

Comments on grades

To obtain a passing grade for the course as a whole, a minimum of grade E is required for the written examination and a passing grade on the assignment. The course grade is then awarded based on the written examination.

Modes of assessment

Written Assignment, 1.5 credits (Code: A001)
Written Examination, 6 credits (Code: A002)

For students with a documented disability, the university may approve applications for adapted or other modes of assessment.

For further information, see the university's local examination regulations.

Specific entry requirements

First-cycle courses of 75 credits in Economics including an independent project of 15 credits.

Statistics, Basic Course, 15 credits and Data Mining and Business Analytics, Basic Course, 15 credits
alternatively
Statistics, Basic Course, 15 credits and 7.5 credits in regression analysis/econometrics/scientific method within economic or statistics. The applicant must also have qualifications corresponding to the course "English 6" or "English B" from the Swedish Upper Secondary School.

For further information, see the university's admission regulations.

Other provisions

The course will be given in English.

Students who have been admitted to and registered on a course have the right to receive tuition and/or supervision for the duration of the time period specified for the particular course to which they were accepted (see, the university's admission regulations (in Swedish)). After that, the right to receive tuition and/or supervision expires.

Reading list and other learning resources

Required Reading

Berk, Jonathan & DeMarzo, Peter (latest edition)
Corporate Finance
Boston, MA: Pearson

Lecture notes, maximum of 200 pages.

Scientific articles, maximum of 150 pages.