Department of Finance

B400 Advanced Corporate Finance

Person responsible: Prof. Dr. Christian Koziol
Lecturer: Prof. Dr. Christian Koziol and Philipp Roßmann, M.Sc.
Language: English
Recommended for:

M.Sc., 1st year
Course type and number of hours: 2 hours lecture + 2 hours practice course
ECTS credits: 9 ECTS
Type of exam: Assignment
Time and place:

Lecture: Monday, 8:30 PM – 10:00 AM, room: S320 (Hölderlinstraße/Sigwartstraße)

Assignment session: Monday, 10:15 PM – 11:45 AM, room: S320 (Hölderlinstraße/Sigwartstraße)

 

The module will be offered face-to-face.

 

Nevertheless, for students who are verifiably unable to attend the lecture in person, we offer a live stream via Zoom. Please register by sending an email to Philipp Roßmann (philipp.rossmannspam prevention@uni-tuebingen.de), stating an appropriate reason and your Zoom name.

Goals

Students develop central factors that drive the optimal capital structure and the total value of a firm. They assess and analyze advanced theoretical models dealing with specific issues and problems in corporate finance. In the practice course students apply those models to real-world data and develop solutions for classical corporate finance problems.

 

Content:

This module focuses on two fundamental question of corporate finance: (1) What is the optimal capital structure of a firm? (2) What drives the value of a firm? The aim of the module is to introduce students to practical and theoretical factors driving capital structure decisions as well as firm values. Within advanced model frameworks students will be enabled to analyze the effects of corporate decisions on issued claims and develop solutions for classical incentive problems in corporate financing.

 

Literature:

  • Berk, Jonathan and DeMarzo, Peter (2017): Corporate Finance, 4th ed., Harlow, London, New York, Munich, Pearson.

  • Grinblatt, Mark and Titman, Sheridan (2002): Financial Markets and Corporate Strategy, 2nd ed., Boston, McGraw-Hill.

  • Kruschwitz, Lutz and Löffler, Andreas (2005): Discounted Cash Flow: A Theory of the Valuation of Firms, 1st ed., John Wiley & Sons.

  • Haag, Valentin and Koziol, Christian (2021): Company Cost of Capital and Leverage: A Simplified Textbook Relationship Revisited, Working Paper.

  • Leland, Hayne E. (1994): Corporate Debt Value, Bond Covenants, and Optimal Capital Structure, Journal of Finance 49, p. 1213-1252.

  • Merton, Robert C. (1974): On the Pricing of Corporate Debt: The Risk Structure of Interest Rates, Journal of Finance 29, p. 449-470.