|Person responsible:||Prof. Dr. Christian Koziol|
|Lecturer:||Prof. Dr. Christian Koziol and Philipp Roßmann, M.Sc.|
|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, 2:15 PM – 3:45 PM, Neuphilologicum HS 036
Case studies: Monday, 4:15 PM – 5:45 PM, Neuphilologicum HS 036
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.
This module focuses on two fundamental question of corporate finance:
What is the optimal capital structure of a firm?
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.
Grinblatt, Mark and Titman, Sheridan (2002): Financial Markets and Corporate Strategy, 2nd ed., Boston, McGraw-Hill.
Berk, Jonathan and DeMarzo, Peter (2017): Corporate Finance, 4th ed., Harlow, London, New York, Munich, Pearson.
Kruschwitz, Lutz and Löffler, Andreas (2006): Discounted Cash Flow, Chichester, Weinheim, Wiley.
Merton, Robert C. (1974): On the Pricing of Corporate Debt: The Risk Structure of Interest Rates, Journal of Finance 29, p. 449-470.
Leland, Hayne E. (1994): Corporate Debt Value, Bond Covenants, and Optimal Capital Structure, Journal of Finance 49, p. 1213-1252.