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Students apply the methodologies and concepts of finance theory to a range of problems concerning the investment and financing decision of listed and private companies. The course also deals with practical problems and aspects of raising equity capital for SMEs and corporates in entrepreneurial settings in general and the influence of sustainability considerations on corporate financing.
Risk and return:
Portfolio theory and capital asset pricing model and its critique, risk and return of financial instruments, cost of capital
Investment decision:
Net present value, IRR, application and problems in practice
Financing decision and capital structure:
Financing instruments, risk/return of capital structure decisions, Modigliani/Miller irrelevance theory, trade-off theory, pecking-order theory, payout decision (dividends and share repurchases)
Debt financing:
bond financing, bond valuation, bond duration
Equity financing:
Overview of sources in the context of raising equity capital, Private Equity / Venture Capital Financing, Seasoned Offerings, IPOs (Unseasoned Offerings) Sustainability:
Overview of the sustainability discourse, the different approaches to measure sustainability (dual materiality, ESG vs. SDG), the impact of sustainability on corporate financing and the different sustainability-related financing instruments. |