MSc in Energy Law, Business, Regulation and Policy > Foundations of Finance in the Energy Sector

Foundations of Finance in the Energy Sector

Aims

The purpose of this course is to introduce students to the fundamental principles of modern finance theory. The course covers the general principles of financial management and highlights the dimensions of organizational culture which are associated with financial knowledge and processes. Students who complete this course will have acquired the tools for financial decision making in the energy sector and for efficient financial management of energy sector enterprises. The course blends theory and practice with particular focus shed on day-to-day practical problems faced by firms’ executives.

Learning outcomes

On completing the course, participants are expected to:

  • Understand the basic principles of modern finance theory with a focus on the energy sector,
  • Be able to implement theoretical knowledge and formulas in everyday managerial problems,
  • Understand the foundations of valuing assets,
  • Appreciate the mechanics, operations and behaviour of capital markets,
  • Understand basic financial concepts and techniques of financial analysis,
  • Apply acquired knowledge in setting out capital budgeting problems in energy sector investments,
  • Assist decision making with regard to energy investment and capital expenditure analysis,
  • Comprehend the implications of risk in the energy markets,
  • Understand the principles of portfolio theory and asset pricing,
  • Identify the tools for raising capital,
  • Understand the implications of mergers & acquisitions in the energy sector.

Content

  • Introduction into the Basic Principles of modern finance theory
  • The financial system, financial markets and financial institutions
  • Agency Problems and Corporate Governance
  • Time value of money
  • The key principles of financial and management accounting
  • Analysis and interpretation of financial statements
  • Bond Valuation
  • Term Structure of Interest Rates
  • Stock Valuation
  • Investment Decision Rules
  • Making Investment Decisions with the Net Present Value Rule
  • Portfolio Theory
  • Capital Asset Pricing Model
  • The Weighted Average Cost of Capital
  • Derivatives in Energy
  • New issues of Stock
  • Corporate Restructurings
  • Mergers and Acquisitions