Syllabus

Title
4711 Corporate Finance
Instructors
Dr. Christian Kreidl
Contact details
chkreidl@kreidl.biz
Type
PI
Weekly hours
2
Language of instruction
Englisch
Registration
01/29/14 to 02/04/14
Registration via LPIS
Notes to the course
Dates
Day Date Time Room
Monday 03/10/14 09:00 AM - 12:30 PM TC.4.14
Monday 03/17/14 09:00 AM - 12:30 PM TC.4.14
Monday 03/24/14 09:00 AM - 12:30 PM TC.4.14
Monday 03/31/14 09:00 AM - 12:30 PM TC.4.14
Monday 04/07/14 09:00 AM - 12:30 PM TC.4.14
Monday 04/28/14 09:00 AM - 12:30 PM TC.4.14
Monday 05/12/14 09:00 AM - 12:30 PM TC.4.14
Tuesday 05/20/14 02:00 PM - 04:00 PM TC.1.02

On this page:

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Contents
  • Goals of corporate finance
  • Types of financial markets
  • Time value of money (discounting and compounding), annuities, perpetuities
  • Equity vs. debt finance, capital structure and financial leverage
  • Weighted average cost of capital (WACC)
  • Equity Finance for quoted and unquoted firms, preferred stock, privileged subscription
  • Bonds and their feature, type of bonds
  • Debt finance and substitutes: bank term loans, trade credits, terms of payment, stretching accounts payable, line of credit, factoring
  • Relationship between risk and return
  • Relevant cash flows of investment projects
  • Capital budgeting techniques and investment: payback period, net present value, internal rate of return


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Learning outcomes

At the end ofthe course students will be able to

  • Define the goals of corporate finance
  • Differentiate between equity and debt financing and know about the various forms of financing including their advantages and drawbacks
  • Describe the relationship of risk and return in the Capital Asset Pricing Model
  • Evaluate investment projects and take investment decisions
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Teaching/learning method(s)
The course is taught using a combination of lectures, case studies, exercises and class discussions. The lectures communicate the basic terms and concepts. In case studies and exercises the theory provided is applied and discussed with the students.
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Assessment

The course will be graded on the basis of three parts:

  • a midterm exam
  • a homework, consisting of different exercises and examples
  • a final exam.
The exams include mainly exercises as well as some multiple choice questions. For the successful completion of the course, students have to achieve at least 51 out of 100 total points.
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Prerequisites for participation and waiting lists

This course cannot be assigned for togehter with "4434 Corporate Investment Decisions and Financial Statement Analysis - students have to choose one of these two courses!

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Recommended previous knowledge and skills

To be able to follow the course the students should have

  • A good understanding of financial accounting (balance sheet and income statement)
  • Knowledge about different types of business organisations (sole proprietorship, partnership, limited liability company, corporation)
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Availability of lecturer(s)

chkreidl@kreidl.biz

for administrative questions please refer to coursesinenglish@wu.ac.at

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Other
This course cannot be assigned for togehter with "4434 Corporate Investment Decisions and Financial Statement Analysis - students have to choose one of these two courses!
Last edited: 2014-02-21



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