Introduction to Corporate Finance

Type of CourseLecture and exercise course
TermWinter term 2013/14
Credits6


Dates/Times/Locations
Thursday, 14:15-15:45, weekly: 24.10.2013 to 06.02.2014
Room: ZHG - ZHG011


Exams
Thursday, 14:15-15:45, Exam: 13.02.2014
Wednesday, 09:15-10:45, Wiederh. Exam: 09.04.2014


Instructors
Muntermann, Jan, Prof. Dr.
Alic, Irina, Dr.
Sinanaj, Griselda, Dr.


Course Language: German

Learning Objectives:

  1. The traditional approach to finance
  2. The modern approach to finance
  3. Basics of investment theory
  4. Methods of investment appraisal
  5. Representing and solving decision problems under uncertainty
  6. Financing costs of individual types of financing
  7. Capital structure and cost of capital for mixed financing scenarios

Course content at a glance

After successful completion of the module students should be able to:

  • Understand and explain the various functions of corporate finance according to the  traditional and the modern approach
  • Understand and apply the basic concepts of corporate finance
  • Know and critically assess the economic foundations of investment theory
  • Understand, explain, and apply fundamental methods of investment appraisal (payback period rule, net present value method, future value method, annuity, method of IRR)
  • Structure decision problems under uncertainty
  • Know different forms of financing, differentiate them from one another and assess their pros and cons
  • Know the concepts of cost of capital and the leverage and be able to assess their importance for the financing of companies

The tutorials deepen the course content and students" knowledge and skills.

Examination: Written examination (90 minutes)

Examination requirements:

  • Evidence of knowledge about the functions of corporate finance according to the traditional and modern approach
  • Demonstrate knowledge of basic financial concepts and the ability to professionally apply them
  • Evidence of understanding the economic foundations of investment theory
  • Ability to correctly define and precisely apply the main methods of investment appraisal
  • Evidence that the basic concept for structuring and solving decision problems under uncertainty is understood
  • Understanding of the various forms of financing as well as the ability to evaluate them
  • Demonstrate knowledge about concepts of cost of capital and the leverage and their meaning

Prior knowledge recommended: none