Corporate Finance - Corporate Finance, Group E

Participation Prerequisites

• sound knowledge in the English language
• knowledge in the area of the relevant mathematical and statistical methods (module mathematics and statistics)
• basic knowledge of the financial markets and in economics

Course Content

The corporate finance course covers the basic principles of corporate finance and develops the necessary practical tools for financial decisions and corporate valuation.

In detail the course covers the following topics:

- financing sources of public firms
- stock prices and the cost of equity
- security issuance process (IPOs)
- dividends and stock repurchases
- determinants of the optimal debt/equity ratio
- weighted average cost of capital
- brief introduction into corporate valuation

Intended Learning Outcomes and Competencies

The finance module covers the fundamental principles in financial markets, corporate finance and asset management. This knowledge can be deepened in elective courses like international finance.

Form of Examination

Two exams will be written "Foundations of Finance" and "Corporate Finance". The module grade will be based on the total score in both exams.

In the "Corporate Finance" lecture practitioners will give talks on the linkage between corporate strategy and corporate finance decisions.

Exam 100%

Literature

Berk, Jonathan, and Peter DeMarzo, 2017. Corporate Finance. 4th edition, Pearson Education