Learning outcome / core skills:
After successfully completing this module, students should be able to:
- understand and being able to explain the different functions of corporate finance within a firm according to the traditional and modern views.
- explain and correctly apply the basic terminology of corporate finance.
- explain and critically reflect the economic foundations of investment theory.
- explain and apply major methods and criteria for investment evaluation (net present value methods, future value method, annuity method, internal rate of return, pay-back method).
- put structure to decision problems under uncertainty.
- explain and distinguish between different forms of financing and be able to critically assess their potential strengths and weaknesses.
- explain the concepts of cost of capital and leverage and be able to illustrate their importance for corporate finance.
1. Introduction to Finance (lecture)
- The traditional view on corporate finance
- The modern view on corporate finance
- Foundations of investments
- Capital budgeting and investment criteria
- Decision problems under uncertainty
- The cost of capital for equity and debt
- Capital structure and the cost of capital
2. Introduction to Finance (tutorial)
- In accompanying tutorials students deepen and extend their knowledge and skills.