Syllabus

The primary textbook for this lecture is: Brealey, R.A., Myers, S.C., Allen, F., 2011, Principles of Corporate Finance (10th ed.). New York: McGraw-Hill (relevant chapters in brackets)

In this lecture, students will mainly focus on the capital structure of corporations

  • Does Debt Policy Matter? (Chapter 17)
  • How Much Should a Firm Borrow? (Chapter 18)

and on financial and real options and their valuation:

  • Understanding Options (Chapter 20)
  • Valuing Options (Chapter 21)
  • Real Options (Chapter 22)

Different forms of corporate liabilities (equity and debt) and payouts to investors (like dividends and share repurchases) will be analyzed. Students will learn and apply methods for valuing corporate liabilities and calculating financing costs. The implications of differing degrees of market efficiency on financing and payout decisions will be discussed in detail.

  • Efficient Markets & Behavioral Finance (Chapters 13, 14)
  • How Corporations Issue Securities (Chapter 15)
  • Payout Policy (Chapter 16)

Also, related topics and their implication for corporate financing will be discussed. These topics include agency problems, risk management, mergers and corporate restructuring.

  • Credit Risk and the Value of Corporate Debt (Chapter 23)
  • Managing Risks (Chapter 26)
  • Managing International Risks (Chapter 27)
  • Governance and Corporate Control around the World (Chapter 33)

The lecture (2h/week) will be held in English and will be offered at two consecutive times (en bloc). Students can select which of the two time slots to participate in. In addition, more than 15 tutorials (each 2h/week) are available in German or in English.

Lecture summer term 2011

When:

  • Lecture: 08:15-11:45am (double lecture)
  • 08.04.2011-08.07.2011 (start of tutorials: 11.04.2011)

Where:

  • Audimax I

Additionally, there are 17 Tutorials per week. Details of tutorial times can be found in STiNE or in the Corporate Finance weekly timetable. 15 Tutorials are in German, 2 in English.

Primary textbook: Brealey, R.A., Myers, S.C., Allen, F., 2011, Principles of Corporate Finance (10th ed.). New York: McGraw-Hill

Additional textbook: Berk, J., DeMarzo, P., 2011 (2nd ed.), Corporate Finance. Boston: Pearson

ATTENTION:

  • All students have to sign up for the lecture and the tutorials via STiNE (incl. ABWL, HWI, …).
  • General questions will only be answered if they are sent to ba_fin@iff-uhh.de.
  • Most questions regarding the lecture and tutorials are answered in the FAQ.