Course content

The Advanced Coprporate Finance course will have the following basic elements: Introduction to Financial Mathematics and classic investment analysis methods. The course will also give an short introduction to risk analysis, portfolio analysis, and the Capital Asset Pricing Model. Weighted average cost of capital, capital structure and dividend policy. Option Theory with basic pricing models: binomial model and Black & Scholes model. International Business Finance and risk management If time allows it the following will also be covered: Incentives, Information and Corporate Control and general risk management.

Learning outcome

The purpose of this course is to help students understand how to approach, solve and present business challenges/issues with an emphasis on corporate finance problems. Case analyses are intended to facilitate the application of business concepts and theories to real business situations. By solving cases, students sharpen analytical thinking and critical decision-making skills. Students also improve presentation skills through presenting analysis and recommendations. By building a strong linkage between theories and real business issues, students will be better prepared to face business issues later in their professional career. The topics of this course center on core concepts and analytical tools from Corporate Finance - profitability, capital structure, enterprise valuation, risk management. The cases used in this course have a strong Finance focus, but require analyzing problems cross-functionally (e.g. macro-/microeconomics, strategy, organization, etc.). Topics include:

• Introduction to issue analysis process
• Identifying key issues and alternatives
• Application of theoretical concepts and analytical tools from corporate finance
• Critical decision-making
• Creating recommendations to solve key issues
• Strategic and operational financial analysis of issues
• Developing implementation and contingency plans
• Oral presentation skills

KNOWLEDGE:

• Develop sound and comprehensive solutions to corporate finance challenges/issues.

SKILLS:

• Identify critical corporate finance issues.
• Analyze issues cross-functionally (i.e. marketing, micro/macro, strategy, organization etc.) and with the use of theoretical frameworks.

GENERAL COMPETENCE:

• Reflective decision-making in business management and finance
• Competently present to business management.

Learning methods and activities

TEACHING METHODS

• Lectures
• Practice sessions
• Case discussions and presentations (presentations are to be made using PowerPoint or similar). More detailed information concerning the case presentations will be provided at the start of the course.

COURSE REQUIREMENT:

Satisfactory presentation of up to 3 cases (see also "mappevurdering").

Recommended previous knowledge

Course AE201115 Corporate Finance or equivalent, and its requirements

Required previous knowledge

Completed 1st and 2nd year in Bachelor program in economics and administration at NTNU or equivalent programs nationally or internationally.

Course materials

Selected case studies

Required textbook: Hillier, Ross, Westerfield et al. : Corporate Finace, 4th European edition, McGraw-Hill

Recommended: The Case Study Handbook: How to Read, Discuss, and Write Persuasively About Cases, Harvard Business Review Press (2007), ISBN: 978-1422101582, Author: William Ellet