Schedule, syllabus and examination date

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Course content

The aim of this course is to give an introduction to corporate finance. The course will cover the financing strategies of corporations, the role of shareholders, valuation of companies, risk, and leasing decisions. The course will combine lectures with case studies and assignments related to the health economics sector.

Learning outcome

Knowledge

The course consists of four main thematic blocks:

1. Introduction to Finance:

  • The purpose of companies. What is the role of shareholders? How can they control managers?
  • What are ways to finance companies? External equity versus internal equity versus debt.
  • How do firms use their equity and debt?

2. Valuation:

  • What defines the value of companies?
  • What defines the values of bonds? What are bonds and why do we have bonds?

3. Risk & Uncertainty:

  • The role of risk and risk diversification
  • Case study: Pharmaceutical companies
  • Portfolio theory

4. Best practice in capital budgeting

  • Project analyses
  • Agency problems

5. Financing large investments in tangible assets

  • Leasing versus buying valuable assets
  • The effect of taxes on leasing versus buying
  • The effect of taxes on financing in general

After completion of the course, you will have knowledge on main finance and investment topics, as described in the contents above.

Skills

After completion of the course, you should be able to provide an overview of the main finance topics, as described in the contents above. You should also be able to conduct an evaluation of different financing alternatives in various cases. You should be able to construct decision trees with two or multiple outcomes, to estimate the value of perfect information, to calculate net present value, internal rate of return and accounting rate of return, and to apply sensitivity analysis applied to investment appraisal

General competence:

Students will after completion of the course have increased awareness of the complexity and various alternatives in corporate finance.

Admission

Students who are admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.

If you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures.

Teaching

Lectures.

Examination

1. Requirement for taking exam: Passed multiple choice test on Fronter.
2. Written exam (2 hours)

Digital examination

The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.

Read more about written examinations using Inspera.

Examination support material

Four types of calculators are allowed to be used during the examination:

  • Citizen SR-270X
  • Citizen SR270X BTSPU
  • Casio FX-82MS
  • TI-30XIIS

Language of examination

The examination text is given in English, and you submit your response in English.

Grading scale

Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.

Explanations and appeals

Resit an examination

For HEPMA students:

For Eu-HEM students:

An EU-hem student cannot present her or himself for the examination in a course more than two times. There will be held re-sits for EU-hem students who have failed an exam or who have legitimate absence (usually illness) in January and August. If you are entitled to a re-sit you must contact the student advisor via email no longer than one week after the result of the exam has been published.

 

Withdrawal from an examination

It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.

Special examination arrangements

Application form, deadline and requirements for special examination arrangements.

Evaluation

The course is subject to continuous evaluation. At regular intervals we also ask students to participate in a more comprehensive evaluation.

Facts about this course

Credits

5

Level

Master

Teaching

Every spring

Examination

Every spring

Teaching language

English