Investment and Financial Analysis
2015-2016 - 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

Written exam, 5 hours

Grading Scale

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

External/internal examiner

One internal examiner. Periodically use of external examiner, next time spring 2018.

Re-sit examination

Re-sit August 2016

Examination support

C: Specified printed and hand-written support material is allowed. A specific basic calculator is allowed.

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