Students understand capital markets and how risk-return considerations relate to financing decisions in corporations. They are able to formulate strategies and make decisions in the areas of investing and capital structuring. They understand the prerequisites and implications of market efficiency for the implementation of investment decisions and corporate mergers.

Risk and Return

• Efficient Frontier
• Correlations, Diversification
• Markowitz Portfolio Theory
• Investment Trends

Capital Market Theory

• Capital Asset Pricing Model
• Leverage
• Efficient Market Hypothesis

Capital Structure

• Role of Equity and Debt
• Modigliani-Miller-model
• Trade-off Theory

• Hillier, D.; Ross, St. A.; Westerfield, R. W.; Jaffe, J. F.; Bradford, J.: Corporate Finance. 2nd European ed., McGraw-Hill 2013.

• Ross, St. A.; Westerfield, R. W.; Jaffe, J. F.: Corporate Finance. 7th ed., McGraw-Hill 2005.

• Brealey, R. A.; Myers, S. C.: Principles of Corporate Finance. 6th ed., McGraw-Hill 2000.

• Copeland, T. E.; Weston, J. F.; Shastri, K.: Financial Theory and Corporate Policy. 4th ed., Addison Wesley 2005.

• Lecture using a combination of media (blackboard work, projector)

• Exercises on the computer

• Case study discussions

• Group work

English  

Written examination 

6

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