| LEVEL | | Bachelor
(held in English)
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AIM OF THE COURSE | | The course covers both theoretical and empirical aspects of (corporate) financial management. Upon completion of the course, students should - be able to determine a firm’s cost of capital, and to make informed investment decisions under uncertainty,
- know how, and under which conditions, capital structure decisions influence firm value,
- have acquired a solid understanding of alternative sources of long-term financing, and
- be familiar with both the use and the limits of financial models used in decision making.
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READINGS | | Main textbook: - Hillier / Ross / Westerfield / Jaffe / Jordan: Corporate Finance, latest European edition, Berkshire
Alternative readings: - Berk / DeMarzo: Corporate Finance, latest edition, Boston (Mass.)
- Brealey / Myers / Allen: Principles of Corporate Finance, latest edition, Boston (Mass.)
Supplementary readings: - Copeland / Weston / Shastri: Financial Theory and Corporate Policy, 4th edition, Boston (Mass.) 2005
- Elton / Gruber / Brown / Goetzmann: Modern Portfolio Theory and Investment Analysis, latest edition, Hoboken (NJ)
- Perridon / Steiner / Rathgeber: Finanzwirtschaft der Unternehmung, aktuelle Auflage, München
- Schmidt / Terberger: Grundzüge der Investitions- und Finanzierungstheorie, 4. Aufl., Wiesbaden 1997 (Nachdrucke 1999 und 2003)
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| NOTE | | This is an intermediate course in finance. If you wish to make the most of it, you should already know how (and why) to determine net present values, and how risk affects an investment's expected return. In addition, you should be familiar with the structure of a firm's financial statements, and with the terms cost of capital, efficient portfolio, capital market line, market portfolio, and CAPM. If all of this is completely new to you, I strongly recommend completing “wir082 Corporate Finance” first. |
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