Finance I

Introduction

Finance deals with the saving and investment of businesses, individuals and authorities, and intervenes in all parts of society. This introductory course in finance focuses primarily on the investment side of finance, and includes financial investments (shares and bonds), so-called real investments (developments, etc.), as well as the importance of sustainable investment decisions. The students acquire knowledge and skills to make investment decisions that are relevant both for companies, authorities and private individuals.

The study connects theory and practice by analyzing realistic examples with Excel. In this way, the students will also acquire useful experience for analyzing investment projects in working life later on.

Course content

• Introduction – Placement of the course's content in the finance subject
• Interest calculation ("financial mathematics") and application to the pricing of shares and bonds
• Portfolio theory, diversification and risk
• The capital value model: Price of risk in financial markets and significance for investment projects' cost of capital
• Review of a realistic case for investment analysis, including creating cash flows and applying profitability criteria.