Corporate Finance and Capital Markets
Key Facts
Lecture (2 SWS) + Exercise class (2 SWS); every SuSe; 5 ECTS; english
Content
- Advanced methods of company valuation (APV, entity, equity approach, autonomous vs. value-based financing, annuity vs. two-phase model, equity costs and beta leverage, capital structure, taxes, multiplier method)
- Determinants of stock price performance (basic performance measures, multifactor models, size and value factors, advanced factors such as liquidity)
- Risk-oriented corporate management concepts (RORAC, RAROC, optimal capital allocation for different target values)
- Optimal risk policy and hedging (basics, foreign currency risks, hedging of currency risks, risk policy for perfect and unperfect markets, risk policy and optimal capital structure, empirical evidence: company value and risk policy for currency risks)
Recommended Reading
In good time before the course begins, a script will be made available electronically via Stud.IP. This will also include the exercise questions. In addition, a comprehensive Excel file will be available there, which can be used to work through the quantitative content interactively.
Applicability and how the exam works
- Master Business Administration (Version 1): Focus Accounting, Finance and Taxation (Fundamentals or Advanced Studies)
- Master Business Administration (Version SuSe2025), Major Finance or Minor Finance
- Master International Economics and Business (Version WiSe 2018): International Finance
- Master International Economics and Business (Version WiSe 2023): Advanced Corporate Finance 1 or Advanced Corporate Finance 2
- Master Wirtschaftsinformatik (Version 1): Fundamentals of Economics
- Master Information Systems (Version SuSe2026): Minor Finance
- Master International Cultural and Business Studies: Specialisation Module in Economics
- Master Computational Mathematics: Modulgroupe Applications
written exam, 60 minutes (100%)
Recommended semester & prerequisites
This course should be taken at the start of your degree programme. It requires a basic understanding of finance, as typically acquired during a bachelor’s degree.
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