Basic Finance

Introduction to Finance. Financial Statements, Taxes, and Cash flow. Working with Financial Statements. Introduction to Valuation (The Time Value of Money). Discounted Cash Flow Valuation. Interest Rates and Bond Valuation. Stock Valuation. Ratio Analysis. Capital budgeting. Some Lessons from Capital Market History. Return Risk and the Security Market Line. Introduction to options. Cost of capital. Raising capital. Financial leverage and capital structure. Dividends. Financial planning.

NB! This course will take place in autumn semester 2024/2025 which starts on 2nd of September and ends 26th of January (you can find that information under Start date section). The real course start and end dates will be announced at the beginning of September at the latest.

After completing this course the student:

• has a thorough overview of the concept of time value of money and is able to apply these tools for solving different finance problems;
• is familiar with financial statements of a company and is able to evaluate company's financial position by applying financial ratios;
• knows and is able to apply the basic capital budgeting techniques;
• knows the main capital structure theories and is able to determine the company's cost of capital;
• understands the operation of financial markets and is familiar with common financial instruments.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

• Ross, Westerfield, and Jordan. Corporate Finance Fundamentals. 10th Edition, McGraw-Hill.

lectures, exercises