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Corporate Finance

Corporate Finance

LEVEL

 

Bachelor
(held in English)

     

AIM OF THE COURSE

  • Understand the role corporate finance plays in today’s business environment
  • Learn how to make investment decisions based on established financial models both under certainty and under uncertainty
  • Understand the limitations of these models
  • Get to know the firm’s main sources of (long-term) financing

COURSE OUTLINE

This course is an introduction to corporate finance. It covers typical tools and techniques used by financial managers in making investment and financing decisions, and it provides insights into their theoretical foundations.

The concept of time value of money and net present value is discussed in detail, first under certainty, and then in the presence of uncertainty. We will examine the relationship between an investment’s risk and its return, and discuss ways to derive risk-adjusted cost of equity capital. In addition, the course provides insights into firms’ main sources of equity and debt financing, like shares, bonds, bank loans, or private equity.

The topics covered in the course are relevant to decision-making in various areas of business management, including operations management, marketing, and in particular corporate strategy.

 READINGS

    

Main Textbook:

  • Hillier / Ross / Westerfield / Jaffe / Jordan: Corporate Finance, 2nd European Edition, McGraw-Hill, 2013

Alternative Readings:

  • Berk / DeMarzo: Corporate Finance, 3rd ed., Boston (Mass.), 2013
  • Brealey / Myers / Allen: Principles of Corporate Finance, 11th ed., Boston (Mass.), 2013
 

The alternative textbooks cover essentially the same topics as Hillier et al., although sometimes in a different order, and with stronger emphasis on the US perspective.

Webmaa3steu8kerhc (stumid7vek@uol.wif7sde) (Stand: 19.02.2020)