Investment and Financial Analysis

Time value of money (calculation), budgeting cash flow, inflation, taxes, calculations and management of working capital, NPV, IRR, payback period method, capital rationing, risk and return for a single asset and a portefolio, CAPM, sensitivity test, capital structure/WACC, home loans, bonds, leasing, instalments, The Binominal model, the Black-Scholes model

The students shall be able to:
-Budget cash flows, including inflation and taxes.
-Analyze and evaluate a project by models using TVM-concepts.
-Calculate the cost of capital by CAPM and evaluate the risk of a single asset and of a portifolio of assets.
-Evaluate the risk by sensitivity tests.
-Calculate and evaluate the most common financial instruments-Anderstand and gowern working capital-Use the Binominal model, the Black-Scholes model

Net-based Learning activities
2 compulsory assignments
Details concerning course requirements will be presented at the beginning of the semester.