FIN 540 Corporate Finance I - Lecture

(English only)

General Information

Corporate Finance studies how corporations finance their operations. The emphasis of this part of the curriculum is on shareholder value and company valuation. We will also study the cost of capital, introduce theories of capital structure, and initial public offerings. The objective of this course is to introduce the fundamental theoretical concepts of company valuation.

    Further Information

  • Learning Outcomes

    After completing this course, students will know and understand state-of-the-art tools such as DCF, Residual Income, EVA, and Multiples. In particular, participants will know how to determine the cost of capital for corporations and projects using real world data. Further, participants will learn how to identify value drivers by applying financial ratio analysis. Students will also be familiar with event studies in order to analyse how capital markets react to important corporate events like merger announcements or earnings announcements.

  • Prerequisites

    There are no formal prerequisites. However, we recommend 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.

  • Registration

    Registration is via Portal2 (matriculated students only). Admission to the course is not limited and no application is needed.

  • Course Material

    You can find all the information and course material on our E-Learning platform Ilias by joining the group „FIN 540 Corporate Finance I - Vorlesung“. Course contents, such as slides, etc., can only be accessed once the semester has started and the official registration is complete.