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 SS 2020
There are historic module descriptions of this module. A module description is valid until replaced by a newer one.
Whether the module’s courses are offered during a specific semester is listed in the section Courses, Learning and Teaching Methods and Literature below.
|available module versions|
|WS 2020/1||SS 2020||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)||
Assistants: Bias, D.
Tue, 13:15–14:45, virtuell
|UE||2||Corporate Finance - Exercise (WI000091)||Bias, D.||
Tue, 15:00–16:30, virtuell
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
At the end of the course, there will be an online exam (unsupervised). This exam consists of theoretical questions regarding corporate finance (e.g. characteristics of real options, when to apply which company valuation method, theoretical considerations on the optimal capital structure) as well as performing applied computations (e.g. valuing real options, computing equity values by discounting cash flows, adjusting firm risk measures for leverage) . The theoretical questions are mainly based on the lecture whereas the calculations are mainly based on the tutorial.
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.