English   Danish

2013/2014  BA-HA_HU65  Essential Topics in Business Finance

English Title
Essential Topics in Business Finance

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Course period Please check www.cbs.dk/summer for the course schedule.
Time Table Please see course schedule at e-Campus
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor - Joseph French, University of Northern Colorado
    Patricia Plackett - Department of Operations Management (OM)
Main academic disciplines
  • Finance
  • Financial and management accounting
  • Economics, macro economics and managerial economics
Last updated on 22-07-2013
Learning objectives
At the end of the course the student should be able to:
  • Examine the basic principles and concepts of financial management and the financial markets.
  • Establish a basic understanding of the role of the financial manager in domestic and multinational corporations.
  • Understand and analyze financial statements using ratio analysis.
  • Develop a thorough understanding of time value of money and its applications to financial and real asset valuation.
  • Analyze financial instruments with a primary emphasis on stock and bond valuation techniques.
  • Obtain an understanding of the relationship between risk and return, and the principles of asset diversification.
  • Provide an in-depth study of capital budgeting methodologies, including internal rate of return, net present value, profitability index, and payback period.
  • Develop an understanding of the cost of capital, its use in financial decision-making, and risk-adjustment techniques.
  • Establish a basic understanding of working capital management and capital structure.
Course prerequisites
Students must have completed and received passing grades in undergraduate economics, accounting, and statistics before enrolling in this course.
Prerequisites for registering for the exam
Compulsory assignments (assessed approved/not approved)
Mandatory Mid-term Assignment: An applied group assignment on valuation will be required at the beginning of class session 6. Students are required to submit the assignment to the instructor and to present their findings to the class in a 5-10 minute presentation. The instructor will provide verbal and written feedback.
Examination
4 hour written exam:
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer Term
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Additional allowed aids
  • Allowed calculators
  • Allowed dictionaries
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure
Dictionaries, calculators of any kind (without internet acces and not in mobile phones) and one A4 page of notes are allowed.
Course content and structure
Every business decision has financial implications. For this reason all aspiring business people need to have a basic understanding of finance.  This course is specifically designed to take students with limited background in finance to a point at which they will be able to understand the important role finance plays in business organizations.  In particular, this course examines the essential principles and topics of financial management. Topics include valuation, risk, financial analysis and planning, working capital management, cost of capital, capital structure, and capital budgeting. 
 
Tentative Course Schedule:The following is a provisional schedule of topics, readings, assignments, due dates and examination dates. Adjustments to the schedule may be necessary as the course proceeds. Note that although the schedule is organized by week, there will be two class sessions per week over the first five weeks and one class session in the sixth week resulting in a total of 11 class meetings.
 
SessionTopic(s)Chapter
1
  1. Overview
  2. Financial Markets
1, 2, and lecture notes
2
  1. Financial Statements
  2. Financial Statement Analysis
3,4, and lecture notes
3
  1. Time Value of Money
5 and 6
4
  1. Introduction to Risk and return
  2. Captial Market Theory
7 and 8
5
  1. Determinants of Interest Rates
  2. Bonds
9 and lecture notes
6
  1. Midterm assignments due
  2. Stock Valution
10
7
  1. Captial Budgeting
11 and 12
8
  1. WACC
  2. Capitial Stucture Theory
14 and lecture notes
9
  1. Dividend Policy
16 and lecture notes
10
  1. Financial Planing and Working Capitial Management
17 and 18
11
  1. Special Topics, Catch-Up, and Comprehensive Review
lecture notes

The course's development of personal competences:
 
The ability to do mathematical computations
The ability to speak comfortably in front of a large group of other students
The ability to work and collaborate with other students
The ability to use appropriate technology
The ability to write effectively
The ability to listen effectively
Teaching methods
The primary teaching methods include: lectures, case analysis, and small group projects.

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings to be read before the start of classes with a related task or tasks in the first two classes in order to 'jump-start' the learning process. Watch ALL of the following videos.

1. http:/​/​download.publicradio.org/​video/​marketplace/​2012/​08/​whats_floating_rate_note.mp4?_kip_ipx=1054734931-1354469805
2. http:/​/​download.publicradio.org/​video/​marketplace/​2012/​05/​assets-what-are-they-anyway.mp4?_kip_ipx=1803647918-1354469836
3. http:/​/​download.publicradio.org/​video/​marketplace/​2012/​03/​What-is-a-junk-bond.mp4?_kip_ipx=1602433948-1354469862
4. http:/​/​download.publicradio.org/​video/​marketplace/​2012/​02/​whats_an_ipo.mp4?_kip_ipx=2011933679-1354469882
5. http:/​/​download.publicradio.org/​video/​marketplace/​2012/​01/​secured_vs_unsecured.mp4?_kip_ipx=901973247-1354469907
6. http:/​/​download.publicradio.org/​video/​marketplace/​2011/​09/​what-is-a-yield-curve.mp4?_kip_ipx=1436186015-1354469959
7. http:/​/​download.publicradio.org/​video/​marketplace/​2011/​08/​how-credit-agencies-work.mp4?_kip_ipx=1754016361-1354469981
After watching the above videos, write TWO short essays (250-350 words; 1-2 pages) that provides your thoughts on two of videos of your choice. Prepare your essays in MS Word with 1-inch margins on all sides, double-spaced and 12 pt. (Times New Roman font). The assignment is due at the beginning of the first class.
Expected literature
  1. Titman, S., Keown, A. and Martin, J. (2011). Financial Management (11th ed.): Prentice Hall
  2. Lecture notes: provided by instructor
Last updated on 22-07-2013