Print Course syllabus
Course syllabus - Finance
Scope
7.5 credits
Course code
NAA115
Valid from
Autumn semester 2014
Education level
First cycle
Progressive Specialisation
G1F (First cycle, has less than 60 credits in first-cycle course/s as entry requirements).
Main area(s)
Economics, Business Administration
School
School of Business, Society and Engineering
Ratified
2014-02-03
Status
This syllabus is not current and will not be given any more
Literature lists
Course literature is preliminary up to 8 weeks before course start. Course literature can be valid over several semesters.
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Books
Investment science
Internat. ed. : New York, NY [u.a.] : Oxford Univ. Press, 2009 - xiv, 494 s.
ISBN: 9780195391060 LIBRIS-ID: 12308777
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Books
Corporate finance
Fourth European edition : London : McGraw-Hill Education, [2020] - xii, 864 sidor
ISBN: 9781526848086 LIBRIS-ID: bnljfrx48qgn2967
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Books
Corporate finance
Third edition : Berkshire : McGraw-Hill, 2016 - xii, 849 pages
ISBN: 0077173635 LIBRIS-ID: 19440503
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Books
Corporate finance
Third edition : Berkshire : McGraw-Hill, 2016 - xii, 849 pages
ISBN: 0077173635 LIBRIS-ID: 19440503
-
Books
Corporate finance
Third edition : Berkshire : McGraw-Hill, 2016 - xii, 849 pages
ISBN: 0077173635 LIBRIS-ID: 19440503
-
Books
Corporate finance
1. European ed. : Berkshire : McGraw-Hill Higher Education, cop. 2010 - xxix, 897 s.
ISBN: 978-0-07-712115-0 LIBRIS-ID: 11751035
Objectives
The aim of this course is to analyze a firm's capital decisions, to price bonds and stocks, to explore the return-risk trade-off, and how to price and use some financial derivatives.
Learning outcomes
After completed course the student shall be able to
- explain and calculate present and future values of simple and growing annuities and perpetuities
- explain and use the Net Present Value and the Internal Rate of Return methods to evaluate investment projects
- explain and use simple theories to price stocks and bonds
- explain and show if there is an optimal capital structure with and without taxes
- explain and show how risky returns are priced
- explain and show how optimal stock portfolios can be constructed
- explain and show how options, futures, forwards and duration work, are priced and can be used to minimize risk
Course content
Classical investment rules under no risk. Using the time value of money to evaluate investments and find optimal prices for both bonds and stocks. Modern theory of investment, the Capital Assets Pricing Model and the Arbitrage Pricing Theory. The firm's optimal capital structure and dividend policy under various tax systems. Financial instruments, such as options, futures, forwards, and duration in order to hedge various types of risk of different financial assets.
Tuition
The course is organised in a series of lectures, including some problems solving meetings and two seminars.
Specific requirements
Students must (i) have studied 30 credits in Economics and have passed at least 22.5 credits when the course starts or (ii) have studied 30 credits in Economics and have passed at least 15 credits when the course starts and have also passed 15 credits in Business Administration, provided that at least 7.5 credits are credits in financial and management accounting. That can be achieved by any of the courses Financial Accounting I 7,5 credits or Cost and Management Accounting I 7,5 credits. In addition, Mathematics course C/Mathematics course 3b or 3c and English course B/English course 6, equivalent to TOEFL test result, minimum score 575 with a TWE score of at least 4,5 (PBT) or 90 with a TWE score of at least 20 (iBT)/IELTS test result with an overall band score of minimum 6,5 and no band score below 5,5.
Examination
Assignment (INL1), 1 credit, mark Passed (G)
Assignment (INL2), 1 credit, mark Passed (G)
Examination (TEN1), 5,5 credits, marks Passed (G) or Passed with distinction (VG)
Students' knowledge is evaluated by a written final examination. Students have access to financial formulae and their calculator.
A student who has a certificate from MDU regarding a disability has the opportunity to submit a request for supportive measures during written examinations or other forms of examination, in accordance with the Rules and Regulations for Examinations at First-cycle and Second-cycle Level at Mälardalen University (2020/1655). It is the examiner who takes decisions on any supportive measures, based on what kind of certificate is issued, and in that case which measures are to be applied.
Suspicions of attempting to deceive in examinations (cheating) are reported to the Vice-Chancellor, in accordance with the Higher Education Ordinance, and are examined by the University’s Disciplinary Board. If the Disciplinary Board considers the student to be guilty of a disciplinary offence, the Board will take a decision on disciplinary action, which will be a warning or suspension.
Grade
Pass with distinction, Pass, Fail
Interim Regulations and Other Regulations
This course overlaps 3 credits with NAA201 Corporate Finance, 4,5 credits with NAA202 Investment Theory and 7,5 credits with NAA106 Finance.