Welcome to Financial Economics (GNA3DA) at Dalarna University!

Learning Outcomes

On completion of the course, students will be able to:

• understand the role of the capital market in the economy and the fundamental principles of corporate finance
• evaluate investment decisions by applying various investment assessment methods
• evaluate financial assets, such as stocks, bonds, and options, using financial instrument pricing models
• examine the relationship between risk and return and apply principles of portfolio diversification to optimise financial investment decisions
• analyse the cost of capital and evaluate capital structure decisions and their impact on a firm’s value
• evaluate and perform simple financial analyses.

Course Content

The course introduces basic knowledge in financial economics with tools for analysing financial decisions. It addresses the basics of corporate finance, valuation of risky cash flows, evaluation of corporate investment projects, asset pricing theories, and models for pricing stocks and bonds. The course also includes portfolio theory, the theory of efficient markets, capital structure, and options. Theoretical concepts are combined with practical applications.

Assessment

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

Grades

The grading scale used for the final course grade is U–VG.

Grades are reported as follows:

• Financial Economics - 7.5 Credits | U–VG

Entry Requirements

• Statistics 7.5 credits or Microeconomics 7.5 credits and Macroeconomics 7.5 credits

Course Literature

Stephen Ross, Randolph Westerfield, Jeffrey Jaffe and Bradford Jordan (2022) Corporate Finance, 13^th Edition, ISBN:  9781265533199, published by McGraw Hill.

Schedule

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

Note: As this 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”. The exam will take place entirely online in Canvas.

Exam Dates

Written Exam (Tentamen): 29/10; Time: 9.00 - 13.00; Place: Online via Zoom (Examination A -D) 

Retake Exam (Omtentamen): To be announced.

Make-up Exam (Omtentamen): To be announced.

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