course-details-portlet

BBOA3010 - Corporate Finance

About

Examination arrangement

Examination arrangement: School exam
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours D

Course content

Valuation, risk and return, capital budgeting decisions, market efficiency, dividend policy, capital structure, equity financing, debt financing, and options.

Learning outcome

Aims

This course provides a theoretical framework used to address issues in project appraisal and financing, payout policy, capital structure, equity offerings and risk management. It provides students with the tools required for further studies in corporate financial management and investments.

At the end of this course students are expected to be able to:

Knowledge

  • analyze the governance decisions of a company
  • value projects using key capital budgeting techniques
  • appreciate approaches available to raise funds to finance projects and investments
  • understand the theories of risk and return
  • explain the relevance of the payout policy and its role in valuation of securities
  • discuss the trade-off firms face between tax advantages and various costs of debt
  • discuss different capital structure theories
  • calculate and apply different costs of capital in valuation
  • analyze options and their valuation methodologies
  • appreciate options as a tool to manage risk

Skills

  • use appropriate valuation method(s) depending on the context of the corporate decision
  • analyze securities and investment projects
  • apply options for risk management purposes

General competence

Students are expected to appreciate the consequences of various investment and financing decisions made by a firm.

Learning methods and activities

Videos, lectures and group studies

Compulsory assignments

  • One written assignment

Further on evaluation

Supporting material allowed on exams:

  • Language dictionary
  • Approved calculator regarding NTNUs support material code B-D "specific basic calculator".
  • Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus.

Specific conditions

Required previous knowledge

BØA2200 (for students on a 3-year Bachelor programme in Business Administration at NTNU Business School), or similar prior knowledge (for students on an exchange programme)

Course materials

Reading list will be made available at the start of the course.

Credit reductions

Course code Reduction From To
BØA3010 7.5 SPRING 2013
TIØ4145 3.7 AUTUMN 2019
More on the course

No

Facts

Version: A
Credits:  7.5 SP
Study level: Third-year courses, level III

Coursework

Term no.: 1
Teaching semester:  AUTUMN 2024

Language of instruction: English

Location: Trondheim

Subject area(s)
  • Economics and Administration
Contact information
Course coordinator:

Department with academic responsibility
NTNU Business School

Examination

Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Autumn ORD School exam 100/100 D 2024-12-17 15:00 INSPERA
Room Building Number of candidates
SL311 brun sone Sluppenvegen 14 4
SL310 turkis sone Sluppenvegen 14 18
SL311 orange sone Sluppenvegen 14 43
Summer UTS School exam 100/100 D INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
Examination

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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