Corporate Finance and Analysis D, 15 Credits

Contents

This finance course is intended for students who want to increase their familiarity with the practical applications of financial management. The two 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 and financing. The course is given and examined in English.

• Module 1. Advanced Financial Statement Analysis and Valuation, 7,5 credits
• Module 2. Advanced Corporate Finance, 7.5 credits

Common expected learning outcome:

• communicate central concepts for the course in English, both orally and in writing

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:

• value the equity, operations and debt of companies using different valuation approaches/models and financial statement information
• analyze and reformulate financial statements to identify a firm's business strategy and value drivers so as to facilitate forecasting and valuation
• analyze market prices, value drivers and financial measures, e.g., profitability, growth, P/B and P/E ratios, and their relations to estimated fundamental value
• explain the relations between accounting standards, e.g. IFRS and US GAAP, accounting methods and value
• integrate environmental, social and corporate governance (ESG) factors into equity valuation
• understand and be able to apply an academic approach to avoid plagiarism in academic work.

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 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 the 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
• reflect upon sustainable finance in relation to corporate finance

Focus of instruction
Learning is supported by lectures, as well as group workshops and seminars.

Module examination modes
Examination is based upon a written individual hall exam and written group assignments with presentations. Note as well examination modes for the course below.

Expected learning outcomes

See each separate module.

Required Knowledge

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.

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 the first examination will be offered an opportunity for re-examination within 2 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, another 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 on deviations 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 in examination. Rules and regulations concerning the production of academic texts and correct referencing is applicable to written assignments. Submitted material is subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.

Transfer of credits
Student who considers themselves to possess knowledge from previous relevant studies or professional or vocational experience that can be comparable to a course or part of a course, can apply for transfer of credits. Approved transfer of credits means that the student does not need to take the or those parts of the course that the decision covers. Information about transfer of credits can be found on Umeå University's web site.

Other regulations

This course can not be included in the degree together with 2FE144, 2FE108, 2FE196, 2BA415, 2BA401.