On completion of the course, students will have a very good understanding of the range of financial decisions that modern corporations confront. They have a good understanding of how financial theories facilitate corporate decision-making in general; and how they affect specific corporate finance decisions. Students will also have developed good knowledge of central corporate finance decisions, including decisions relating to: Capital structure, Risk and capital costs, Dividend policy, Corporate restructurings, Investment appraisals and Cash management. Finally, students obtain knowledge ofn how the relationships between managers and different type of owners interact with the different type of financial decisions.
On completion of the course, students have a good understanding of which factors to rely on when for example: Determining risk and capital costs; Suggesting reasonable dividend pay-out ratios, capital structures and liquidity levels; Assessing the feasibility of divestiture, equity issue and acquisition decisions; Analyzing and choosing between investment projects;
On completion of the course, students will extend their competence in: Analyzing real-life financial problems and identify aspects critical for decision-making; Discussing and writing analyses of business problems; and in so doing, integrate different perspectives to inform a balanced overall decision; Solve problems through group work and present case solutions to peers; and set up and use financial modelling tools.
Course participants solve problems and suggest their own decisions, and they also critically assess existing practices, policies or proposals. Solutions to these real-life problems are presented and discussed in written and verbal formats.
The course covers a range of financial decisions. In the beginning of the course, a frame of reference is developed. This includes an outlining of important financial theories, corporate governance mechanisms, the functioning of various financial markets and risk assessment. From here follows more in-depth analyses of classic empirical corporate finance decisions such as capital structure and dividend policy. This leads on to more specialized decisions including corporate restructurings (IPOs, Spin-offs, corporate acquisitions, etc.).
The last part of the course emphasizes internal financial decisions with financial aspects. This includes, for example, the assessment and internal comparison of investment projects, the decision to centralize some financial functions of the corporation, as well as how to use internal control mechanisms and the disclosure of financial targets and strategies.
The course is taught within the Master of Accounting and Auditing. For this reason, a particular emphasis is given to accounting aspects of the financial problems. This includes, for example, the role of the auditor, financial reporting and the interactions between accounting disclosure requirements and financial decisions.
Required prerequisite knowledge
|Written exam||1/1||4 hours||A - F||Valid calculator. |
- Course coordinator
- Lars Mattias Hamberg
Method of work
|Corporate Finance (MØA310_1)||5|
|Corporate Finance and Control (MØA309_1)||10|
Compendium with articles and other text material available on Canvas (Universitetet i Stavanger, 2019).
Sist oppdatert: 18.09.2019