ØKA1019 Investments and Financial Management
- Number of credits7,5
- Teaching semester2025 Spring
- Language of instructionEnglish
- CampusLillehammer
- Required prerequisite knowledge
Suggested prerequisites: ØKA1016 Grunnleggende bedriftsøkonomi, ØKA1012 Grunnleggende regnskap, ØKA1025 Matematikk for økonomer og ØKA1026 Statistikk for økonomer.
- Models and techniques for budgeting relevant cash flows
- Time value of money, interest rates and discounted cash flows
- Models and techniques for valuing investments- and financing projects: Net Present Value, Internal rate of return, The payback rule
- Assessing risk using sensitivity analysis and star charts
- Cost of capital, capital asset pricing model, risk adjusted return
- Financing sources
- Relation between debt ratio and risk for the owners
- English terminology within the field of finance
Learning Outcome
Upon completion of the course, the student shall be able to:
- identify situations and decision problems where investment analysis is relevant to use
- describe the concept of time value of money and use the terms nominal-, real-, and risk adjusted interest rate correctly
- describe and compare key methods used to make investment decisions
- describe key methods for assessing risk associated with investment decisions; sensitivity analysis; scenario analysis; decision trees
- explain how the capital asset pricing models works and interpret empirical results from real life applications
- explain the relation between debt ratio and risk for the firm
- budget decision relevant cash flows for both investment- and financing decisions
- assess the value of various investments based on net present value (NPV), internal rate of return, and the payback rule
- assess various financing opportunities based using net present value and effective interest rate
- develop decision support for investment- and financing decisions using appropriate valuation and risk assessment techniques.
- apply the capital asset pricing model (CAPM) to estimate risk adjusted cost of capital whenever the market risk is relevant
- assess the value of investment- and financing decisions with a focus on (1) time value of money, (2) coping with risk, and (3) calculations of relevant cash flows
- obtain familiarity with common English terminology within the field of finance
- explain and discuss the value of flexibility with peers and decision makers when it comes to firms’ investment decisions
The following teaching methods are used:
- Lectures
- Exercise sessions
- Tutorial videos
- Case studies
- Quizzes
- 2-4 mandatory assignments must be passed to be allow to take the exam.
- These will be combinations of practical and theoretical exercises covering key topics in the course.
| Form of assessment | Grading scale | Grouping | Duration of assessment | Support materials | Proportion | Comment |
|---|---|---|---|---|---|---|
Written examination with invigilation | ECTS - A-F | Individual | 4 Hour(s) |
| 100 | About permitted aids: calculator in line with the requirements given by the study program. |
| Name | Credits | Date | Comment |
|---|---|---|---|
3BED200 Investering og finansiering | 7,5 | ||
KBED200 Investering og finansiering | 7,5 | ||
SBED200 Investering og finansiering | 7,5 |
Reading list
No reading list available for this course