Corporate Finance deals with how corporations finance their operations. The emphasis of this course is on general financing issues, the security issuance process, payout and debt policy, company valuation, and the introduction of various financial instruments (options, bonds, forwards, futures, swaps etc.). We will also study cost of capital, specific theories of capital structure, and deal with the issue of how corporations manage their risks.
Organization of the Course
The course FIN401 Corporate Finance & Risk Management (Finanzwirtschaft II) consists of two parts. The first part includes six lectures and deals with topics in corporate finance. The second part also consists of six lectures and discusses various financial instruments (options, futures, forwards, bonds, swaps, etc.), as well as real investments and risk management.
Time and Venue
We offer three courses on Tuesdays for each weekly lecture. All courses cover the same contents. You have to register for one of the courses via Portal². Once registered, courses cannot be changed and you have to stick to them! The courses are scheduled for
- 8:30-10:00am „Schloss Schneckenhof Nord“, lecture theatre SN 169 („Röchling-Hörsaal“)
- 1:45-3:15pm „Schloss Schneckenhof Nord“, lecture theatre SN 169 („Röchling-Hörsaal“)
- 3:30-5:00pm „Schloss Schneckenhof Nord“, lecture theatre SN 169 („Röchling-Hörsaal“)
The first lecture is on Tuesday, September 4, 2018.
It is important to start with the first lecture, otherwise it will be hard to keep up with the contents of the course.
The main source of help and up-to-date information during this semester is the discussion board for this course provided by Ilias. You will be able to access the Ilias course page after registration via Portal². A guide on how to register can be downloaded here. All questions that are of general interest regarding content, logistics, and assessment of this course should be posted there. You can send us an e-mail (fin401(at)mail.uni-mannheim.de) containing specific questions that are rather of personal nature. However, e-mails containing general questions will be posted to the discussion board. Usually, we will try to respond to postings on the board within 24 hours. It is likely that several other students share „your question“. The discussion board allows everybody to participate in the discussion. This enhances everybody's learning experience.
We will also use the discussion board for general announcements related to this course. You therefore should enable e-mail notifications for new announcements and posts on the forum.
Language of Instruction
The course is taught in English. All materials and the exam will be in English (including your solution of the exam).
There are exercise sessions held by master's students and PhDs to accompany this course. We offer English groups for the exercise sessions. There will be 12 exercise groups.
Students do not need to register for an exercise session. You can go to any exercise session that you prefer. After the first week of the exercise session, we will post the student attendance of all 1st sessions in the Ilias forum, so that you can avoid joining sessions that might be over-crowded.
Students will receive one final grade for this course. The final grade consists of up to two components - a midterm exam and the final exam. The midterm exam is voluntary but may count towards the final grade on an optional basis. The final exam is mandatory for each student.
The weighting of the midterm and final exam depends on the student's achievement in the voluntary midterm exam. If the grade of the midterm exam is better than the final exam grade, the final grade will consist of two components - midterm exam (30%), and final exam (70%). If the grade of the midterm is worse than that of the final exam, the final grade will be the grade of the final exam (100%). Please be aware that if you fail (or cross out!) the exam, your final grade still consists of those components and if altogether the grade is 4.0 or better, you will pass the course and you can not register for the retake!
In any case, the rules pointed out above apply only to the first examination date in December. For those who re-take the exam in February, the exam will make up 100% of the final grade.
The final exam will be a closed-book exam. You have to register for the final exam via the Studierendenportal within the deadline stated on Studierendenportal. In case you did register for the midterm exam, you do not need to do so again for the final exam. You will be registered for the final exam in December automatically. If you decide not to take the midterm exam, you are required to register for the final exam during that time. The examination time is 90 minutes. The exam may cover all materials discussed in the first and second part of the lecture.
----- Exam dates are comminicated through ILIAS -----
The venue of the exam will be published by the Student Services.
Additionally, we offer review sessions for each exam. Date and time will be announced in the forum. Note that if you demand a reassessment of your exam, answers to all questions of the exam are reassessed. This can lead to a better grade or a worse grade.
The midterm exam will be a closed-book exam. The exam is voluntary and may count 30% towards the final grade (see explanation above). The examination time is 45 minutes. The midterm exam will cover all materials discussed in the first part of the lecture.
----- The midterm date is comminicated through ILIAS -----
The registration procedure for all exams is detailed on ILIAS.
The course is based on the textbook „Principles of Corporate Finance“ by Richard A. Brealey, Stewart C. Myers and Franklin Allen, 12th edition, published by McGraw-Hill 2016.
There are no other articles or further readings for this course. The book also contains practice questions and quizzes for self-study and a link to a website with further materials. Students can also use the previous editions (11th/2013 or 10th/2011) of this book, as there are only minor changes.