Applied Finance is a useful addition to undergraduate corporate finance courses for all MSc in Business students, except finance majors. Note that this course does not qualify as a prerequisite for advanced specialization courses in finance.

The first half of the course will revisit the basic principles for investment decisions, valuing financial assets, and challenge the students to implement them. We will focus on capital budgeting decisions, portfolio theory (mean-variance analysis), the CAPM and some extensions thereof.

The second half of the course will first revisit the basic insight in capital structure with a particular focus on the Miller Modigliani Theorem and when it does and does not hold. We will apply this knowledge to some real world case studies. Lectures will be used to refresh the theory and are followed up by examples and exercises, small projects and cases that give students the opportunity to apply the concepts and techniques to real-world situations. The cases will provide hands-on experience with real data.

Course content

  • Introduction to financial markets/instruments
  • Capital budgeting decisions
  • Portfolio tools
  • Mean-variance analysis
  • Capital Asset Pricing Model (CAPM)
  • Capital structure in perfect markets
  • Capital structure with taxes
  • Capital structure with bankruptcy costs


This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.