Investment and Financial Analysis
2009-2010 - SMF2111 - 10 ECTS

On the basis of

• SMF 1042
• REA1131

Expected learning outcomes

The students shall be able to:
-Budget cash flows, including inflation and taxes.
-Analyze and evaluate a project by models using TVM-concepts.
-Calculate the cost of capital by CAPM and evaluate the risk of a single asset and of a portifolio of assets.
-Evaluate the risk by sensitivity tests.
-Calculate and evaluate the most common financial instruments

-Anderstand and gowern working capital

-Use the Binominal model, the Black-Scholes model

Topic(s)

Time value of money (calculation), budgeting cash flow, inflation, taxes, calculations and management of working capital, NPV, IRR, payback period method, capital rationing, risk and return for a single asset and a portefolio, CAPM, sensitivity test, capital structure/WACC, home loans, bonds, leasing, instalments, The Binominal model, the Black-Scholes model

Teaching Methods

Lectures
Group works
Mandatory assignments

Form(s) of Assessment

Other

Form(s) of Assessment (additional text)

Home examination in groups, 12 hours (50%)+ individual multiple choice (3 hours) (50%). Both parts must be passed.

Grading Scale

Alphabetical Scale, A(best) – F (fail)

External/internal examiner

To internal examiners

Re-sit examination

No re-sit examination

Examination support

Home examination in groups (12 hours), all support

Individual multiple choice (3 hours), calculator

Coursework Requirements

4 Exercises
Details concerning course requirements will be presented at the beginning of the semester.

Teaching Materials

Bøhren, Øyvind og Per Ivar Gjærum (siste utg.): Prosjektanalyse. Skarvet forlag. ISBN 82-992405-6-5

Bøhren, Øyvind og Dag Michalsen (siste utgave): Finansiell Økonomi, Teori og praksis. Skarvet Forlag. ISBN 82-992405-8-1.

(Lærebøker kan bli erstattet av nyere utgave av samme bok, hvis den foreligger ved semesterstart )

Replacement course for

SMF2011