Corporate Finance and Analysis D 15 credits

About the course

This finance course is intended for students who want to increase their familiarity with the practical applications of financial management. The two modules provide students with an opportunity to acquire a high level of expertise in central areas of financial management of firms, covering topics such as firm valuation and financing. The course is given and examined in English.

• Module 1. Advanced Financial Statement Analysis and Valuation, 7,5 credits
• Module 2. Advanced Corporate Finance, 7.5 credits

Common expected learning outcome:

• communicate central concepts for the course in English, both orally and in writing

Module 1. Advanced Financial Statement Analysis and Valuation, 7.5 credits
The module aims to provide students with relevant theories, methods and models for valuing companies and their securities, primarily equity (common stock). The module deals with the analysis of financial statement information and the use of this information for business strategy analysis, performance evaluation and investment decisions. Accounting and discounted cash flow approaches to valuation are discussed as are forecasting of dividends, earnings, cash flows and pro forma analyses. During the module, students will also be introduced to the code of academic conduct, e.g. referencing and avoidance of plagiarism and cheating.

Expected learning outcomes:
After successful completion of the module, the student should be able to:

• value the equity, operations and debt of companies using different valuation approaches/models and financial statement information
• analyze and reformulate financial statements to identify a firm's business strategy and value drivers so as to facilitate forecasting and valuation
• analyze market prices, value drivers and financial measures, e.g., profitability, growth, P/B and P/E ratios, and their relations to estimated fundamental value
• explain the relations between accounting standards, e.g. IFRS and US GAAP, accounting methods and value
• integrate environmental, social and corporate governance (ESG) factors into equity valuation
• understand and be able to apply an academic approach to avoid plagiarism in academic work.

Focus of instruction
Learning is supported by lectures, seminars, literature i.e. textbook and research articles, cases and projects. Students are introduced to academic conduct, for example how cheating and plagiarism can be avoided and referencing techniques. 

Examination modes
Examination is based on an individual written hall exam, multiple choice tests and an individual computer-based examination on plagiarism and referencing. A passing grade is required for examination in the module. The course is given and examined in English. Note as well examination modes below for the course as a whole.

Module 2. Advanced Corporate Finance, 7.5 credits
The primary purpose of this module is to provide an integrated overview of the most important concepts in Corporate Finance, both in theory and in practise and in some cases methodologically. The subject extends the student's knowledge about the context in which corporations operate. Topics to be covered in this module include capital market imperfections and methods developed in finance to control risk and reduce uncertainty in the financial management of corporations. Issues in corporate policy and strategy, based on theoretical developments in finance are presented. Students will learn the processes involved in the valuation of debt and equity and the methods that have been used to manipulate external perceptions of business outcomes. During the module, students will also be introduced to methods of working in international teams.

Expected learning outcomes
After completing the module, the student should be able to:

• assess the impact of information asymmetry on corporate financial policy decisions from the selection of particular modes of financing to dealing with the problems associated with financial distress
• explain the theoretical basis and applicable strategies applied in regard to issues of corporate control
• compare and contrast leverage strategies in ideal versus real capital markets and be able to explain the expected impact of alternative taxation systems on the use of debt in a firm's capital structure
• argue for optimal levels of corporate debt and/or equity and be able to value an offering of either, under different financing strategies
• reflect upon sustainable finance in relation to corporate finance

Focus of instruction
Learning is supported by lectures, as well as group workshops and seminars.

Module examination modes
Examination is based upon a written individual hall exam and written group assignments with presentations. Note as well examination modes for the course below.