Corporate Finance studies how corporations finance their operations. The emphasis of this part of the curriculum is on shareholder value and company valuation. The focus of the course will be on solving several case studies in groups of up to three students. Each of these cases has to be handed in and will contribute to the final grade. The hands-on format of this course ensures that students are able to transfer the theoretical concepts encountered in the lecture (FIN540) to real world problems.
After completing this course, students will be able to value companies using state-of-the-art tools such as DCF, Residual Income, EVA, and Multiples. In particular, participants will be able to determine the cost of capital for corporations and projects using real world data. Participants will be able to identify value drivers by applying financial ratio analysis and analyse the impact of those value drivers on the firm value. Students will also be able to perform event studies in order to analyse how capital markets react to important corporate events like merger announcements or earnings announcements. Students will be able to implement the theoretical concepts discussed in the lecture (FIN 540) using Microsoft Excel.
There are no formal prerequisites. We recommend the parallel completion of FIN 540 Corporate Finance I and that every student participating in this course should have completed the equivalent of the 2-semester finance module, which is part of the Mannheim Bachelor program. The lectures generally assume basic knowledge in accounting (balance sheets, income statements, financial ratios), finance (present value methods, portfolio theory, CAPM), mathematics (calculus, optimization) and statistics (mean, variance, standard deviation, univariate and multivariate regressions). The course assumes that students already manage the material in Brealey, Myers, Allen, Corporate Finance, (McGraw-Hill, 10th edition, 2010), chapters 1-19.
If you also want to take part in FIN 541, you need to apply for it via Portal2, under the module “Anmeldepflichtige Veranstaltungen MMM”. Whether or not you will be accepted for FIN541 depends on your other course preferences since places are limited. Please note that the Chair of Corporate Finance has no influence on the course allocation!
Exchange students who want to take part in FIN 541 should contact Ms. Annabel Müller instead. Please send her a transcript of records and any relevant experiences in finance.
You can find all the information and course material on our E-Learning platform Ilias by joining the group “FIN 541 Corporate Finance I Fallstudie”. Course contents, such as slides, etc., can only be accessed once the semester has started and the official registration is complete.