Current Trends and a Minor in Finance D, 30 Credits

Contents

This finance course is intended for students who want to increase their familiarity with the practical applications of financial management. The four modules, combined, provide students with a high level of expertise in the financial management of companies whether small or large, local, regional, national or multi-national. Many of the academic staff have experience in business, from running their own firms to sitting on corporate boards.

1. Research Methodology, 7,5 ECTS
2. Module Advanced Corporate finance, 7.5 ECTS
3. Module Investments, 7.5 ECTS
4.  Current Trends in Business Administration 7.5 ECTS

Module 1.   Research Methodology, 7.5 ECTS

Expected learning outcomes (ELO)

Generic ELO:

Examination modes

Module 2.   Advanced Corporate Finance, 7.5 ECTS
Our primary intent, in offering this subject, is to provide an integrated overview of the most important concepts in corporate finance. The subject extends the student’s knowledge about the context in which corporations operate. It also serves as the foundation for the package of subjects that the student will select within the Finance programme.

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.  Optimization strategies and approaches to recovery from financial distress are also covered.

Expected learning outcomes
After completing this 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 predict the impact of alternative taxation systems on the use of debt in a firm’s capital structure
• determine optimal levels of corporate debt and/or equity and be able to price an offering of either under different financing strategies
• formulate and logically defend  a position in regard to current issues, such as corporate control and governance, which confront corporations today

Focus of instruction
This subject will be presented using large group lectures as well as smaller group workshops and/or seminars.

Examination modes
Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part of the module.

Module 3.   Investments, 7.5 ECTS
Students undertaking this module are provided with a specialization at an advanced level in investment analysis. Students will be provided with the knowledge needed to understand relevant theories and models in the field.  They will be able to apply these to stock and bond portfolio management. The module is used to provide students with a lasting conceptual framework from which to both view the investment process and to analyze future ideas and changes in the investment environment.

In this module fixed income securities, mainly bonds, are reviewed in terms of valuation and portfolio management. This includes coverage of concepts as duration analysis, convexity and immunization.  Derivative securities (options, futures, swaps and convertibles securities), their pricing and relevant parity-relationships are emphasized and studied within the course. The creation of synthetic securities and the construction and maintenance of various hedging strategies for both portfolios and individual securities using different derivatives are also discussed. The concept of  Value at risk, as well as, including back- and stresstesting, essential tools for modern  risk management,  are also covered in the context of investment management. Finally, students are taught how to measure the performance of managed portfolios.

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

• value fixed income securities and measure their associated risk.
• apply active and passive portfolio management techniques to fixed income securities
• calculate value at risk (VAR), as well as, perform backtesting for individual securities and portfolios
• value derivatives and explain the use of various derivatives in hedging investments and their impact on potential returns, as well as, value portfolios containing derivative securities
• evaluate portfolio performance using, for example, risk-adjusted metrics

Focus of instruction
The core topics of this module will be covered by lectures, although seminars, cases and computer exercises utilizing Excel may also be used. Students are expected to play an active role in every aspect of the course module.

Examination modes
Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part of the module.

Module 4. Current Trends in Business Administration, 7,5 ECTS

Expected learning outcomes

Focus of instruction

Examination modes

Expected learning outcomes

See respective module.

Required Knowledge

University: Admitted to one of the following Master programs in Business Administration (Management, Accounting, Marketing or Business Development and internationalization) at Umeå School of Business and Economics.

Form of instruction

See respective module.

Other regulations

This is a course at D-level (Advanced level) in the Masters program in Business and Administration at Umeå School of Business and Economics.