Welcome to Financial Economics (NA1003) at Dalarna University

Course Content

This course covers the following topics: Introduction to corporate finance and the net present value approach for valuation; the introduction of risk as a concept and its implementation into valuation or estimation models; Portfolio Theory and the Capital Asset Pricing Model (CAPM); analysis of the cost of capital and capital-structure in the Miller & Modigliani framework. Valuation of options and the Black & Scholes Formula.

Learning Outcomes

On completion of this course the student will be able to:
- understand the role of the capital market within society
- evaluate and make simple financial analysis
- use simple models for pricing of financial instruments
- derive and analyze the interaction between financial decisions and corporate valuation.

The student will acquire knowledge of:
- valuation models for financial instruments
- Effective Market Hypothesis (EMH)
- risk and portfolio analysis
- Miller & Modigliani propositions
- risk-cost of capital- and capital budgeting
- options and capital budgeting

Examination and Assessment

The course is assessed by a written final exam and assignments, equivalent to 7.5 credits (U-VG).

Course Literature

Stephen Ross, Randolph Westerfield, Jeffrey Jaffe and Bradford Jordan (2021) Corporate Finance, 13^th Edition, ISBN:  9781265533199, published by McGraw Hill.

Grades

The Swedish grades U - VG.

Schedule

The course starts in Week 36 and ends in Week 45.

Since NA1003 is a distance course, we will not have online or physical meetings. This means, you will not attend live lectures online in Canvas or via Zoom.  I will upload recorded lectures in the course room so that you can watch them any time you want. If you click on “Modules” in the course menu on the left, you will find the recorded lectures in the folder “Recorded Lectures”. 

Exam Dates

Final Exam: Wednesday, November 6, 2024 (Online via Zoom, 9.00 - 13.00)

Re-exam: Monday, November 25, 2024 (Online via Zoom, 9.00 - 13.00)

Make-up exam: To be announced

	Course Syllabus		Contact information
	Reading List		Alemu Chala Course Coordinator alch@du.se