Sommer Term 18

Vorlesung

Corporate Finance

Lecturer:
  • Prof. Dr. Heiko Jacobs
Contact:
Term:
Summer Semester 2018
Time:
donnerstags 16:15 - 17:45
Room:
T03 R02 D39
Start:
12.04.2018
Language:
English
Moodle:
Lecture in Moodle
LSF:
Lecture in LSF
Participants:
Linked Lectures:

Learning Targets:

Students

  • get familiar with modern concepts and methods of analyzing optimal financial decision making in corporations,
  • can evaluate the empirical validity of leading models and apply them to solve real-world problems in corporate financial decision making,
  • are able to understand and explain discrepancies between the theory and the practice of corporate finance,
  • can evaluate scientific studies accurately, understand the methodology used in leading papers of the field, can interpret estimation results correctly and analyze them critically,
  • can communicate and debate topics of the lecture in a structured and professional way.

Outline:

  • Introduction
  • The NPV rule and the IRR rule
  • Making investment decisions with the NPV rule
  • Valuing stocks and bonds
  • Real options
  • Portfolio theory and the CAPM
  • Estimating the cost of capital
  • Capital structure (CS) in a perfect capital market
  • CS: Debt and taxes
  • CS: Financial distress, incentives, signalling
  • Payout policy

Literature:

  • Brealey/ Myers / Allen: “Principles of Corporate Finance”, McGraw-Hill, New York.
  • Ross/Westerfield/Jaffe: “Corporate Finance”, McGraw-Hill, New York.
  • Berk/DeMarzo: “Corporate Finance”, Pearson Prentice Hall, Boston.

Formalities:

Students are assumed to have undergraduate level knowledge of finance and economics. Some basic knowledge of statistics/econometrics is helpful to understand empirical research conducted in the research papers. A sufficient level of spoken and written English language skills is necessary.