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.
Lern- und Qualifikationsziele
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.
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.
|Vorlesung||2 SWS||12 SWS|
|Prüfungsform und -umfang||Written exam (60 min.)|
|Informationen zur Anmeldung||–|
Marc Gabarro, Ph.D.
Marc Gabarro, Ph.D.
|Dauer des Moduls||1 Semester|
|Verwendbarkeit||M.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., M.Sc. Wirt. Math., MAKUWI|
|Literatur||Berk, Jonathan and Peter DeMarzo: Corporate Finance, latest edition, Pearson|
Hiller, Grinblatt, Titman, Financial Markets and Corporate Strategy, 2nd edition, Irwin/
Benninga, Simon, Financial Modeling, 4th edition, MIT Press
Weston, Mitchel, Mulherin, Takeovers, Restructuring , and Corporate Governance, 4th edition, Prentice Hall
Additional books and articles
Generating financial forecasts
Residual income approaches
Measuring the cost of capital
Corporate finance and taxes
Capital structure policy
Initial public offerings