Master's Programme in Business Administration (5 years)
Language of instruction
BE-110 Managerial Accounting, BE-111 Financial Accounting 1, BE-209 Financial Accounting 2 and ME-111 Business Analytics 1, or equivalent.
Upon successful completion of this course the students should be able to:
understand the relationship between the use of NPV as a decision criterion for investments
demonstrate understanding of the concept of working capital management
work out the relevant free cash flow for an investment, and implement profitability analyses based on net present value
calculate the internal rate of return, and understand the relationship with net present value
understand the concepts of systematic and diversifiable risk in financial markets
demonstrate insight into the capital asset pricing model (CAPM) and apply it to estimate the cost of capital
understand how capital structure affects the weighted average cost of capital (WACC) and investment value
understand how sustainability and responsible investing affects mananagement, investments, financing opportunities and capital costs for a company
Key topics in this course are different approaches and methods for measuring project profitability, the relationship between cash flow and return. The importance of taxation and debt financing is highlighted. The choice between mutually exclusive investments is also discussed. The course covers different methods for project and company valuation. The course discusses investor's use of financial markets for investments, and companies' use of financial markets for financing. For the company, the choice between debt and equity (capital structure) is emphasized, especially the relationship between capital structure and project valuation. We also discuss the societal role of the company, and how different aspects of sustainability (ESG – Environment, Social, Governance) affect capital cost and project valuation.
Lectures and group work. Estimated work load is about 200 hours.
Approved compulsory assignments. More information on Canvas by the start of the semester.
Assessment methods and criteria
3 hour written examination with letter grades.
The person responsible for the course, in consultation with the student representative, decides the method of evaluation and whether the courses will have a midterm- or end of term evaluation, see also the Quality System, section 4.1. Information about evaluation method for the course will be posted on Canvas.