FIN 401: Corporate Finance and Risk Management
Contents
- A fundamental introduction to the modern theory of business financing
- An introduction to business valuation and capital costs calculus
- An introduction to the most important derivatives (forwards, options)
- An introduction to corporate risk management
Learning outcomes
Participants of this partial module learn to assess and analyze the decision making problems of a finance department. They will be able to understand the effects of the fiscal system on financial decisions and to correctly calculate the capital costs for a corporation. Students will be made familiar with the essential instruments and decision-making processes inherent to the financing of listed corporations (stocks, bonds, loans, convertible bonds and other structured products). They also learn to understand the key risks a modern corporation faces and how to use derivatives to manage risks. Students will also be familiar with basic pricing techniques for derivative instruments.
Necessary prerequisites
Semester 3 or higher
Recommended prerequisites
FIN 301 Investments and Asset Pricing
| Forms of teaching and learning | Contact hours | Independent study time |
|---|---|---|
| Lecture | 2 SWS | 7 SWS |
| Exercise class | 2 SWS | 6 SWS |
| ECTS credits | 6 |
| Graded | yes |
| Workload | 180h |
| Language | English |
| Form of assessment | Written exam (90 min) |
| Restricted admission | no |
| Further information | – |
Examiner Performing lecturer |  | Prof. Dr. Stefan Ruenzi Prof. Ernst Maug, Ph.D. Prof. Dr. Stefan Ruenzi / Prof. Ernst Maug Ph.D. |
| Frequency of offering | Fall semester |
| Duration of module | 1 semester |
| Range of application | B.Sc. BWL |
| Preliminary course work | Online Quizzes |
| Program-specific Competency Goals | CG 1 |
| Literature | The course is based on the textbook „Principles of Corporate Finance“ by Richard A. Brealey, Stewart C. Myers, and Franklin Allen, 13th edition, published by McGraw-Hill 2019. Students may also rely on earlier editions. 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/ All lecture slides and exercise materials can be downloaded on Ilias. You will be able to access the material after registration via the student portal. |
| Course outline |
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