This module handbook serves to describe contents, learning outcome, methods and examination type as well as linking to current dates for courses and module examination in the respective sections.
Module version of WS 2018/9 (current)
There are historic module descriptions of this module. A module description is valid until replaced by a newer one.
|available module versions|
|WS 2018/9||SS 2015||WS 2011/2|
WI000091 is a semester module in English language at Bachelor’s level and Master’s level which is offered in summer semester.
This Module is included in the following catalogues within the study programs in physics.
- Catalogue of soft-skill courses
|Total workload||Contact hours||Credits (ECTS)|
|180 h||60 h||6 CP|
Content, Learning Outcome and Preconditions
• Options: Basic understanding, put call parity, binomial and Black-Scholes option pricing, equity as call option
• Real options: Identification and binomial pricing
• Valuation: Introduction to DCF methods, multiples methods and applications
• IPO: Empirical studies of IPO costs, IPO process
• Capital structure: WACC under OPM, CAPM and MM, trade off theory of debt, agency theory of debt, pecking order theory of debt
• Efficient markets: Definitions, modeling, empirical approaches and results
• M&A: Explanations of wealth effects of M&A, explanations for conglomerates, Empirical results on
other forms of ownership decreases and change (divestitures, carve outs, spin offs, tracking stock,
split ups, LBOs)
• Dividend policy: Theories of optimal dividend policy, Empirical evidence
Courses, Learning and Teaching Methods and Literature
Courses and Schedule
|VO||2||Corporate Finance (WI000091)||
Tue, 13:15–14:45, 0606
|UE||2||Corporate Finance - Exercise (WI000091)||
Tue, 15:00–16:30, 0606
Learning and Teaching Methods
• Berk, DeMarzo (2014, 3/E): Corporate Finance
• Copeland, T. E./ Weston, J. F./ Shastri, K. (2005): Financial Theory and Corporate Policy, USA, Addison Wesley, 4th International Edition.
Further recommended readings will be given in the lecture.
Description of exams and course work
Furthermore, students have the option to write a one-hour, closed book, multiple choice midterm exam. With this exam students can improve their final grade by one fraction (0,2/0,3). The exam covers the material from the first half of the term, students show that they are able to explain and evaluate the most common concepts in corporate finance. By completing calculations students demonstrate that they are able to apply these concepts.
There is a possibility to take the exam in the following semester.