Knowledge

The student...

can describe fundamental theories regarding the operations of financial markets in a modern market economy
can explain relevant theories regarding investment and financing projects as economic activity
can describe theoretical underpinnings regarding valuation methods used in corporate finance
can describe links between valuation methods and owners` equity
can describe various sources of finance and how financial structure affects risk
can describe central theories and controversies in financial economics
can describe recent empirics regarding financial markets in Norway

Skills

The student...

can budget decision relevant free cash flow in investment projects
can use financial mathematics to discount cashflows
can compute risk adjusted cost of capital using the capital asset pricing model
can use valuation methods such as net present value, internal rate of return, modified internal rate of return and payback period
can perform sensitivity analysis to assess risk in investment projects
can compute optimal duration of investment projects
can compute interest costs and analyse various financing choices
can perform valuation incorporating taking taxes and inflation in capital budgeting cases
can compute expected return and risk measures for risky projects
can compute expected return and risk measures for portfolios of investment projects
can compute Value-at-Risk for risky projects and portfolios
can use regression analysis to assess credit risk
can use relevant spreadsheet models to analyse corporate finance decisions

General competence

The student...

Subject description 6004

Investment and Financing