Investment and Financial Management

The module will give students a braod understanding of the instruments to analyse and evaluate investment opportunities. Subsequent, a complete list of these methods:
- Financial Statement Analysis (balance sheet analysis, analysis of profut and loss account)
- Investment Analysis (net present value method, actuarial return)
- Capital Budgeting (determination of free cashflows, choosing between alternatives)
- Cost of Capital (equity costs, borrowing costs, capital costs)
- Capital Structure

Upon completion of this module students will be able to: (1) to name and apply important measures of company performance, (2) to analyze and choose investment projects, (3) to create the optimal capital structure of projects and firms, (4) restate and employ concepts of financial mathematics and (5) to evaluate financial instruments.

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The module will combine several teaching methods.
- Weekly Lecture: Presentation of theoretical basics and applied examples, supported by slides. As a better learning effect is reached by a dynamic learning environment, the student can join in live surveys with onlineTED.
- Excercise available on several dates: Calculation of selected exercises from the set of exercises in small groups so the students can directly ask questions about the calculations.
- Set of exercises with applied examples for individual practising of exercises.

Presentations, exercises with solutions, onlineTED

Berk/DeMarzo, Corporate Finance, 3rd. Edition, Pearson.

The grading is based on a written exam with a duration of 120 minutes. To test whether the students acquired the theoretical basics in financial analysis and investment planning, multiple choice questions are asked, where they have to find the correct or incorrect statement among several alternative statements. By using a calculator and the formulary issued by the chair, the students for exapmle have to analyse investment projects, create the optimal capital stucture of projects or firms, evaluate bonds, stocks, or equity options, and have to choose the right alternative from various possible answers as the exam is in form of multiple choice questions.