Swedish name: Financial Management D
This syllabus is valid: 2024-08-19 and until further notice
Syllabus for courses starting after 2024-08-19
Syllabus for courses starting between 2023-07-31 and 2024-08-18
Syllabus for courses starting between 2021-08-16 and 2023-07-30
Syllabus for courses starting between 2020-12-21 and 2021-08-15
Syllabus for courses starting between 2020-08-17 and 2020-12-20
Syllabus for courses starting between 2018-08-20 and 2020-08-16
Syllabus for courses starting between 2017-08-21 and 2018-08-19
Syllabus for courses starting between 2016-08-29 and 2017-08-20
Syllabus for courses starting between 2015-08-24 and 2016-08-28
Syllabus for courses starting between 2014-08-25 and 2015-08-23
Syllabus for courses starting between 2013-08-26 and 2014-08-24
Syllabus for courses starting between 2012-08-27 and 2013-08-25
Syllabus for courses starting between 2011-09-05 and 2012-08-26
Course code: 2FE108
Credit points: 30
Education level: Second cycle
Main Field of Study and progress level:
Business Administration: Second cycle, has only first-cycle course/s as entry requirements
Grading scale: Three-grade scale
Responsible department: Business Administration
Revised by: Dean of Umeå School of Business, Economics and Statistics, 2024-06-05
This finance course is intended for students who want to increase their familiarity with the practical applications of financial management. The four modules provide students with an opportunity to acquire a high level of expertise in central areas of financial management of firms, covering topics such as firm valuation, financing, investments, as well as risk management. While each of the modules cover different aspects of the financial management of companies, module 1-3 constitute the basis for the understanding of the fourth module.
The course is given and examined in English.
The course has a number of goals for the development of generic skills. After completing the course, the student should be able to:
Common expected learning outcome:
Module 1. Advanced Financial Statement Analysis and Valuation, 7.5 credits
The module aims to provide students with relevant theories, methods and models for valuing companies and their securities, primarily equity (common stock). The module deals with the analysis of financial statement information and the use of this information for business strategy analysis, performance evaluation and investment decisions. Accounting and discounted cash flow approaches to valuation are discussed as are forecasting of dividends, earnings, cash flows and pro forma analyses. During the module, students will also be introduced to the code of academic conduct, e.g. referencing and avoidance of plagiarism and cheating.
Expected learning outcomes:
After successful completion of the module, the student should be able to:
Focus of instruction
Learning is supported by lectures, seminars, literature i.e. textbook and research articles, cases and projects. Students are introduced to academic conduct, for example how cheating and plagiarism can be avoided and referencing techniques.
Examination modes
Examination is based on an individual written hall exam, multiple choice tests and an individual computer-based examination on plagiarism and referencing. A passing grade is required for examination in the module. The course is given and examined in English. Note as well examination modes below for the course as a whole.
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.During the module, students will also be introduced to methods of working in international teams.
Expected learning outcomes
After completing this module, the student should be able to:
Focus of instruction
Learning is supported by lectures, as well as in smaller group workshops and seminars.
Examination modes
Examination is based on a written individual hall exam and group assignments. A passing grade is required for each part of the module. 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:
Focus of instruction
Learning is supported by lectures, although seminars, cases and computer exercises utilizing Excel may also be used.
Examination modes
Examination is based on a written individual hall exam and a written group assignment. A passing grade is required for each part of the module. Note as well examination modes for the course below.
Module 4. Risk Management 7,5 credits
A general principal in finance is that there is a trade-off between expected return and risk. Minimizing the cost of risk to an optimum level unanimously means increasing the value of a firm. Much has happened in financial markets that has highlighted the importance of risk management in financial institutions. The module covers traditional risks such as market and credit risks, and then focuses on recent developments regarding liquidity, operational and model risks. It combines discussions around the concepts and mathematical approaches of volatility and Value at Risk and also highlights the role of trading, regulations and innovations. Students are focused on the way risks are managed by financial institutions, but many of the ideas are equally applicable to all kinds of businesses. The module contents are aligned with the FRM Certification, Exam Part 1, delivered by the Global Association of Risk Professionals (GARP)
Expected learning outcomes
After completing the module, the student should be able to
Focus of instruction
Learning is supported by lectures, seminars, case studies, guest lectures, with bank managers and course papers. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Cases related to the topics will also be used. Students are required to make oral presentations at seminars and during case analyses and to submit written course papers. Students will write an individual reflection paper in which they will assess their current performance and identify their needs of further knowledge.
Examination modes
Examination is based upon a written individual hall exam and group assignments (written and/or orally). A passing grade is required for each part of the module. Note as well examination modes for the course below.
See each separate module.
90 credits out of which 75 credits in Business Administration whereof 15 credit bachelor courses or equivalent. Approved 52,5 credits whereof 7,5 credits in bachelor courses.At least 7,5 credits in Finance courses.
It is required to have broad knowledge of different specializations within the subject of Business Administration i.e. Management, Marketing, Accounting and Finance. Statistics 7.5 credits or equivalent.
Proficiency in English equivalent to Swedish upper secondary course English B/6.
See each separate module.
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 the first examination will be offered an opportunity to sit a re- examination within two months. An additional examination opportunity is normally offered every academic year, one week prior to the start of the autumn term. If required by specific circumstances, other form of examination can be used.
A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than 14 days before the next examination opportunity.
Adaptations
Examiners may decide to deviate from the modes of assessment in the course syllabus. Individual adaptation of modes of assessment must give due consideration to the student's needs. The adaptation of modes of assessment must remain within the framework of the intended learning outcomes in the course syllabus. Students who require an adapted examination - and have received a decision on the right to support from the coordinator at the Student Services Office for students with disabilities - must submit a request to the department holding the course no later than 10 days before the examination. The examiner decides on the adaptation of the examination, after which the student will be notified.
Academic integrity and cheating
As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against students who use unauthorized help aids or in some other way try to mislead on a test or on another type of task for examination. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to written assignments. Submitted material may be subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.
Academic credit transfers are according to the University credit transfer regulations.
This course can not be included in the degree together with 2fe144, 2fe196, 2fe180
Penman Stephen H.
Financial statement analysis and security valuation
5th ed. : New York : McGraw-Hill Higher Education : 2012 : 740 s. :
ISBN: 978-0-07-132640-7 (pbk.)
Mandatory
Search the University Library catalogue
Brealey Richard A.
Principles of corporate finance
Fourteenth edition. : New York, NY : McGraw Hill LLC : [2023] : pages cm :
ISBN: 9781265074159
Mandatory
Search the University Library catalogue
Investments and portfolio management
Bodie Zvi, Kane Alex, Marcus Alan J.
Global ed., 9. ed. : New York : McGraw-Hill/Irwin : cop. 2011 : 1022, 14, 20 s. :
ISBN: 978-0-07-128914-6 (pbk.)
Mandatory
Search the University Library catalogue
Hull John
Risk management and financial institutions
Sixth edition : Hoboken, New Jersey : Wiley : [2023] : xxvi, 804 sidor :
ISBN: 9781119932482
Mandatory
Search the University Library catalogue
Reading instructions: E-book ISBN: 9781119932505
Reference literature: Hull John (2014). Options, Futures and Other Derivatives, 9th edition, Pearson Prentice Hall. Miller Michael (2013). Mathematics and Statistics for Financial Risk Management, 2nd edition, Wiley & Sons. Malz Allan (2011). Financial Risk Management: Models, History and Institutions. Wiley & Sons. Sanders Anthony and Millon Cornett Marcia (2014). Financial Institutions Management: A Risk Management Approach. 8th edition, McGraw-Hill.
Research articles and other case material will be added at the start of the module, approximately 100 pages in total.
Umeå School of Business, Economics and Statistics USBE. Thesis writing in Business Administration. Thesis manual. (latest edition)
USBE Business Administration :
https://www.umu.se/en/student/usbe/thesis-and-degree-project-work/