General provisions

The course is offered within the Bachelor's Programme in Business and for Exchange students.

Entry requirements

30 credits from basic courses (A level) in business studies, and either the course 2FE258 Financial Accounting 2 and Corporate Finance 7.5 credits or 7.5 credits in economics at B-level.

Learning outcomes

The overall purpose of the course is to provide basic knowledge of theories and methods for making rational and optimal financial decisions in companies and organisations.

Upon completion of the course, students are expected to:

• calculate the value of bonds, stocks and projects,
• understand the relationship between risk and return,
• explain and calculate how a company's capital structure can impact its value,
• evaluate various options for the company's long-term financing,
• discuss corporate payout policy and its impact on the company's value,
• understand how options are valued and how they can be used,
• understand how companies can manage various types of risks,
• discuss and evaluate mergers and acquisitions,
• understand and explain fundamental concepts, theories, and principles of corporate governance.

Content

Topics covered in the course include the following:

• Valuation of Bonds, Stocks and Projects
• Risk and Return
• Capital Structure
• Options
• Long-term financing
• Risk Management
• Mergers and Acquisitions
• Corporate Governance

Instruction

Instruction is carried out in the form of lectures, seminars and supervision during the course. The language of instruction is English.

Assessment

The examination consists of two modules:

1. Written Exam part 1, 7,5 credits (U, G, VG)
2. Written Exam part 2, 7,5 credits (U, G, VG)

A collective grade is given for the entire course, 15 credits.

For a Pass (G) as a collective grade of the entire course, a Pass (G) is required on both modules, respectively. For a Pass with distinction (VG) as a collective grade of the entire course, a Pass with distinction (VG) is required on both modules, respectively. Grading criteria are presented in the study guide that applies to the course section. The examination in both modules is carried out individually.

For students who did not receive a passing grade on modules 1 and/or 2, there is the option to be examined via re-exam without re-registration at a future course section.

If there are special reasons for doing so, an examiner may make an exception from the method of assessment indicated and allow a student to be assessed by another method. An example of special reasons might be a certificate regarding special pedagogical support from the University's disability coordinator.

Uppsala University does not accept cheating or plagiarism. Suspected incidents of cheating or plagiarism are reported to the Vice-Chancellor, which may issue a formal warning to the student or suspend the student from studies for a certain period.

NOTE: Only completed courses can count toward a degree.

Other regulations

The course overlaps among others Corporate Finance 2FE253, Basic Corporate Finance 2FE997 and Enterprise, Control and Analysis 2FE215.