Current Trends and a Minor in Finance D, 30 Credits

Contents

The course gives the opportunity to further develop within the major subject in a module on the latest development and in a module on research methodology. The course also gives a Minor subject in Finance.
The course is given an examined in English.

Generic learning outcomes.
The course has a number of goals for the development of generic skills. After completing the course, the student should be able to:

• analyze and frame problems in the financial area
• understand and evaluate financial management related issues from an ethical perspective
• work effectively in team environments
• plan, conduct, and present investigations, both orally and in writing, for an academic audience as well as an audience of business practitioners.

The course consists of the following four modules:

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

Module 1. Research Methodology in Business Research, 7,5 credits
The overarching aim of this course is to develop advanced knowledge of perspectives, strategies and design in research. This will increase the student’s ability to carry out and assess business research and investigations. Important building blocks are the problem formulation, frames of reference, scientific approaches, including the ontological and epistemological points of departure, and methods for data collection and analysis.

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

• identify and discuss how fundamental assumptions, scientific ideals, perspectives and frames of reference influence a process of scientific knowledge creation
• formulate and argue for relevant research questions, including the theoretical relevance and positioning
• discuss characteristics of research strategies and approaches, critically review and assess literature, and discuss and evaluate the suitability of various methods to solve different research questions
• apply acquired knowledge in the planning, design, implementation and reporting of scientific studies
• demonstrate an ability to assess and discuss social, environmental and ethical dimensions of business research issues

Focus of instruction:
Lectures, seminars, practical assignment(s), individually or in groups, and the reading material complement each other to help students to develop deep knowledge of what scientific research in business and management fields is all about.

Examination modes
The final grade is based on a written exam and reporting of assignment(s). Participation at all seminars and presentations is compulsory to pass the module. The final grade is awarded when the student has passed all assignments and compulsory course elements. The course is given an examined in English. Note as well examination modes for the course below.

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 even 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.

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 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
• formulate and logically defend a position in regard to current issues, such as corporate control and governance, which confront corporations today

Focus of instruction
Learning is supported by lectures, as well as in smaller group workshops and 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. The course is given and examined in English. Note as well examination modes for the course below.

Module 3. Investments, 7.5 credits
Students undertaking the Investments module are provided with an opportunity to learn relevant theories and models to acquire a specialization at an advanced level in investment analysis. In the module fixed income securities 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 module. 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, an essential tool for modern risk management, is further covered in the context of investment management. The module, finally, also include coverage of portfolio management strategies and measurement of portfolio performance.

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

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

Focus of instruction
Learning is supported 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. The course is given and examined in English. Note as well examination modes for the course below.

Module 4. Current Trends in Business Administration 7,5 credits
The aim of this module is to lead the students to explore, create greater far-sightedness and also readiness to meet emerging strategic trends in the field of business administration. The first part of the course focuses on general theories, practice, and methods related to future studies. Specific attention is paid to international trends which are predicted to have a long-term impact on society at large. The second part concentrates on the core areas of the master programs in business administration at USBE, and will examine how trends may be transformed to strategies and management routines related to businesses. Emerging research questions and suggestions for future research in accounting, entrepreneurship, finance, management, or marketing will be discussed. In the last part of the module each student will apply acquired knowledge to a chosen trend and present this in a written report.

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

• identify and evaluate emerging trends in society and relate these to research in business administration within the field of the student’s major
• demonstrate familiarity with methods for for instance forecasting, scanning, and scenarios
• propose specific action plans for how companies can deal with current trends
• analyze sources used in terms of relevance and credibility

Focus of instruction
Learning is supported by lectures, seminars and course papers. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Students will make oral presentations at seminars and submit written course papers.

Examination modes
Examination is based upon an individual written. The paper is presented orally and defended in a seminar. A passing grade is required for each part of the module. The course is given and examined in English. Note as well examination modes for the course below.

Expected learning outcomes

See each separate module.

Required Knowledge

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. 30 credits within the core course in Business Administration at the master program.

Form of instruction

See each separate module.

Examination modes

See each separate module and below.
 
The following grading system is used:
Pass with distinction (Väl godkänd, VG, 75% or more),
Pass (Godkänd, G, 50% or more)
and Fail (Underkänd U, less than 50%).
 
Grades on the course are awarded when the student has passed all examinations and compulsory course elements. The course is given and examined in English.
To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three out of four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.
 
A student who does not pass at the time of the written examination will be offered an opportunity to sit a further examination within two months. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.
In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module. Mandatory assignments (seminars, written assignments, cases, computer assignments etc.) that have not been handed in within stipulated time must be done the next time the course is offered. If the form of examination does not permit repetition other forms of re-examination may be used.
 
When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.
 
A student who has passed an examination cannot redo the examination to get a higher grade.
 
If a student fails to present a photo ID at the occasion of a written exam in an exam room will not be allowed to take the exam.
 
Disciplinary action may be taken against students who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the thesis manual, Thesis Writing in Business Administration). Urkund records may be used for control. In addtion, Umeå University rules and regulations for education and research applies:  http://www.umu.se/regelverk/utbildning-pa-grund--och-avancerad-niva.
Educational activities are designed to facilitate students towards achieving expected learning outcomes and can explain, supplement and provide contrast to the course literature and other relevant course materials.
 
 
 

Other regulations

 Academic credit transfers is done in accordance with the University credit transfer regulations.