CEFA / CIIA - Svenska handelshögskolan

Course Units1. Financial Markets: Structure,Operation and RegulationA comprehensive overview of the function, developmentand prevailing rules governing the general structure andoperation of financial markets and trading systems, includinga discussion of the supervision of financial marketsand their regulatory agencies, and an analysis ofthe key rules and legislation governing the influence ofmarket participants on market efficiency, volatility andliquidity.2. Financial Accounting and FinancialStatement AnalysisAn examination of the accounting data used in financialanalyses, of the accounting and economic concepts ofprofit and value, of the problems in valuating assets andliabilities, and of the major ideas in balance sheet andincome statement analysis.3. Equity Valuation and AnalysisCorporate value creation and equity valuation. Equityanalysis using relative valuation multiples and discountedcash flow models. Key concepts include free cash flow,payout and plowback ratio, sustainable growth rate, costof capital, financial leverage, economic value added.4. Corporate FinanceValue implications of long-term corporate financial decisionssuch as dividend policy and capital structure. Raisingcapital. Use of non-standard sources of financing such asmezzanine financing. Fundamentals of short term financing.Mergers and acquisitions, LBOs as well as corporategovernance.5. Fixed Income Valuation and Analysis,and EconomicsAn examination of the types, characteristics and pricingof fixed income securities. Topics covered include theeffects of differences in maturity and credit risks, fundamentaldeterminants of interest rates and the termstructure of interest rates, the estimation of the durationand convexity of interest rates, and hedging. Course participants,upon successful completion of this unit, will beable to value both standard and special bonds such asbonds with warrants, convertible bonds, callable bondsand mortgage backed securities. This module also includesan economics part, focusing mainly on macroeconomics.The topics include basic macroeconomics, andmacroeconomic dynamics such as economic growth andbusiness cycles. Also open-economy issues including exchangerate determination and monetary policy will bedealt with.