Course

Corporate Finance (BØK260)

This introductory course in finance primarily focuses on how companies select investments, and then determine financing for the investment decisions. The purpose of the course is to give the students the necessary knowledge about the concepts and methods used to make investment decisions. The main focus is on financial investments (stocks and bonds), project financing and various investment decisions for projects are reviewed. An introduction to options is also given. The language of instruction and the exam language is English .


Course description for study year 2025-2026. Please note that changes may occur.

Facts

Course code

BØK260

Credits (ECTS)

10

Semester tution start

Autumn

Language of instruction

English

Number of semesters

1

Exam semester

Autumn

Time table

View course schedule

Literature

Search for literature in Leganto

Content

  • Introduction - course context in economy and financial markets
  • Cash flows
  • Interest calculation / financial mathematics
  • Decision criteria (Net present value, internal rate of return, payback, etc.)
  • Risk and return
  • Cost of capital
  • Market efficiency
  • Financing of investments
  • International finance
  • Options
  • Risk management

Learning outcome

Knowledge

On completion of the course, students will be able to understand:

  • General principles of investment analysis
  • Why we focus on cash flows and not profit
  • Discount rate / cost of capital
  • The various decision criteria for an investment. NPV, IRR, etc
  • The concept of total risk, and how it is determined
  • Portfolio theory and its significance for diversification.
  • Beta and the Capital Asset Pricing Model (CAPM)
  • Weighted Average Cost of Capital (WACC) and when to use it
  • Market efficiency
  • Options and risk management in international finance

Skills

Upon completion of this course, students will be able to:

  • make investment calculations and decisions for projects
  • apply discounting rules
  • use various decision criteria for both equities and bonds
  • apply the portfolio theory to different investment options and calculate Beta
  • apply the CAPM model
  • calculate the weighted average cost of capital
  • calculate the present value of investment projects and discuss risk in investment decisions
  • evaluate different financing options
  • evaluate options and arbitrage opportunities (as opposed to estimating option premiums)

Required prerequisite knowledge

One of the following alternatives:
Financial accounting - principles and analysis (BØK102)
Financial and management accounting - an introduction (BØK195)
Statistics

Recommended prerequisites

Financial accounting - principles and analysis (BØK102), Mathematical method for economists (BØK108), Financial and management accounting - an introduction (BØK195), Microeconomics (BØK265)
Statistics

Exam

Form of assessment Weight Duration Marks Aid
Written exam 1/1 3 Hours Letter grades None permitted, Standard calculator 1), Valid calculator

1) Financial or graphing calculators NOT allowed

Coursework requirements

Mandatory assignments
Weekly individual assignments: assignments must be approved in order to take the final exam.

Course teacher(s)

Study Program Director:

Tarjei Mandt Larsen

Course coordinator:

Olga Aleksandrovna Rabanal

Method of work

One three hour lecture, and additional TA sessions. In order to stimulate a good learning environment, two-way communication with the students is necessary. The students are responsible for participating in lectures, with questions, comments and discussion. It is therefore crucial that students prepare well for each lecture. The expected workload in this course is approximately 300 hours, including self-study.

Overlapping courses

Course Reduction (SP)
Corporate Finance (BØK260_2) , Capital investment and decision theory (ØK0111_1) 2
Corporate Finance (BØK260_2) , Managerial Finance (NH0523_1) 6
Corporate Finance (BØK260_2) , Managerial Finance (NH0523_A) 6
Corporate Finance (BØK260_2) , Financial management (ØK0012_1) 6
Corporate Finance (BØK260_2) , Finance 1 (ØK0012_2) 6
Corporate Finance (BØK260_2) , Finance 1 (ØK0012_A) 6
Finance 1 (BØK130_1) , Corporate Finance (BØK260_2) 10
Economic analysis (BHO200_1) , Corporate Finance (BØK260_2) 5
Corporate Finance (BHO395_1) , Corporate Finance (BØK260_2) 10
Corporate Finance in the hospitality industry (BHO395_2) , Corporate Finance (BØK260_2) 10

Open for

Business Administration - Bachelor's Degree Programme
Exchange programmes at UIS Business School

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital course evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.

Contact

Study Program Director:

Tarjei Mandt Larsen

Course coordinator:

Olga Aleksandrovna Rabanal

Offered by

UiS Business School

UiS School of Business and Law

The course description is retrieved from FS (Felles studentsystem). Version 2