MOØ211 Financial Management

Contents and structure

The first part of the course covers some central microeconomic topics from a managerial perspective. These include pricing, costs and profits; supply and demand analysis; strategic games and decisions under uncertainty.

 

The second part of the course covers fundamental investment and financial theory, including NPV, IRR, RRR calculations and capital structure issues. This section also reviews some financial valuation techniques, and these will be applied in particular to small, technology-based firms.

The third part of the course covers venture capital (VC), both from a theoretical perspective and through practical calculations. Organisational and financial considerations, different types of VC financing and typical VC processes are some of the issues discussed in this part of the course, and the standard VC method is used for various calculations. One or more guest lectures will be arranged during this part of the course.

Learning Outcome

Knowledge

On completion of the course the student:

• has knowledge about fundamental economic and financial concepts, methods and terminology.
• understands the purpose and the process of venture financing.

Skills

On completion of the course the student can:

• perform financial analyses and valuations, both from an investor¿s and an entrepreneur¿s point of view.
• take part in the financial management of start-up firms/projects.
• use economic theory to make good decisions as a manager
• use financial theory in a master`s thesis.

Competence

On completion of the course the student can:

• proceed to more in-depth studies of venture capital or financial management from either a practical or theoretical perspective.
• communicate relevant topics to both specialists and non-specialists.
• know when further expertise is necessary, and where this can be found.

Entry requirements

None.

Recommended previous knowledge

No formal requirements, but previous courses in mathematics, statistics, economics or finance will be very useful. Practical or theoretical knowledge about entrepreneurship or venture financing will also be an advantage.

Teaching methods

The most important success factor is self-study, both reading the literature and working on assigned exercises. This will be complemented by traditional lectures reviewing much of the literature and working through some examples, in addition to one or two guest lectures with a more practical perspective.

Compulsory learning activities

Two assignments must be approved before students may take the examination.

Mandatory assignments are valid in the examination semester and 3 following semesters.

Assessment

Written examination, 5 hours. The examination may be digital.

Time and place for the examination will be announced at Studentweb.

Grading scale is A-F where F is fail.

Examination support material

Calculator. Students should have a calculator with standard financial functions included.

More about examination support material