- 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.
- 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
- 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.
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.