Advanced Corporate Finance

Advanced Corporate Finance


Master, compulsory module in specialization "AFT", 6 ECTS
- Please note that in Winter term 2016/17 the module will be held in German -

Course outline

The course covers key concepts of modern corporate finance in theory and practice. In particular, we focus on how investment and financing decisions affect the value of the firm. Among the topics discussed are:

  • Fundamental analysis and capital market efficiency
  • Cost of debt and equity capital
  • Business valuation models based on dividends, cash flows, and (abnormal) earnings
  • Capital structure decisions and dividend policy
  • Advanced valuation issues

The course is tailored to master's students who already attended an introductory course in (corporate) finance and/or investments at the B.A. level, and have solid knowledge in microeconomics and statistics/econometrics, as well as good working knowledge of a spreadsheet program, such as Microsoft Excel. Please note that the course involves constructing own financial models that build on the concepts discussed in class quickly, so you should try to keep up by reading the assigned literature in due time.

Recommended readings

  • Benninga: Financial Modeling, 3rd edition, Cambridge (Mass.) 2008
  • Hillier / Ross / Westerfield / Jaffe / Jordan: Corporate Finance, European edition, Berkshire 2010
  • Penman: Financial Statement Analysis and Security Valuation, 4th edition, Boston (Mass.) 2010
  • Titman / Martin: Valuation, 2nd edition, Boston (Mass.) 2011
  • Further readings may be announced during the course.

Optional readings

  • Berk / DeMarzo: Corporate Finance, 2nd edition, Boston (Mass.) 2010
  • Copeland / Weston / Shastri: Financial Theory and Corporate Policy, 4th edition, Boston (Mass.) 2005
  • Damodaran: Applied Corporate Finance, 3rd edition, Hoboken (NJ) 2010
  • Damodaran: Damodaran on Valuation, 2nd edition, Hoboken (NJ) 2006
  • Koller / Goedhart / Wessels: Valuation, 5th edition, Hoboken (NJ) 2010
  • Welch: Corporate Finance: An Introduction, 2009, Boston (Mass.)
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