CORPORATE FINANCIAL MANAGEMENT

Assessment methode:

Exam: 60 Min. (6 CP)




Recommended prior knowledge:

Introduction to Finance, Capital Markets and Valuation






Examination Requirements:

• Demonstrate a comprehensive understanding of major issues in corporate financial management and how they are connected.


• Document an understanding of methods of risk assessment and capital budgeting under risk and their application.


• Demonstrate a thorough understanding of how the cost of capital can be determined.


• Show a profound understanding of the concepts of market efficiency, behavioral biases, and their implications for firms’ financial decisions.


• Show the ability to analyze decisions on capital structure and payout policy routed in a clear understanding of various market frictions and agency problems.

Qualification objectives/skills:

After successful completion of the course students will be able to:

• give an overview of major problems in corporate financial management, how they arise and how they are related,


• understand, apply and critically reflect on central methods of risk assessment and investment decision making,


• understand and critically reflect on the determinants of a firm’s cost of capital,


• understand and critically reflect on the efficient market hypothesis and its consequences for corporate financial decision making,


• understand and critically reflect on behavioral aspects in corporate financial management,


• understand firm’s capital structure and payout decisions and being able to relate such decisions to various market frictions and agency problems,


• analyze major theories of optimal capital structure and payout policy with respect to their practical implications and their ability to explain observed financing behavior.

Lecture content:

1. Fundamentals of Corporate Financial Management

2. Investment Decisions: Risk Analysis and Subjective Valuation

3. Investment Decisions: Capital Markets and Determinants of the Cost of Capital

4. Financing Instruments, Efficient Capital Markets, Behavioral Finance and Financing Decisions

5. Capital Structure Decisions

6. Dividends and Payout Decisions